The SEBI Board discussed the various issues relating to registration of FIIs viz issuance of P-Note/ODIs by some FIIs/Sub-accounts, the linkages (or absence thereof) between quantum of P-Notes/ODIs issued v/s the capital flows into the Indian markets.
Other major points or the SEBI Announcements:
>Sebi board cleared proposal to have a separate exchange for SME Segment
>Date of calculation of AUC will be Sept 30
>Sub accounts not to be allowed to issue PNs
>PNs can't be issued with ODIs as underlying
>FIIs shall not issue P-notes as underlying as derivatives has been approved
>Current position to be wound up within 18 months
>Board has decided further issuance of P-notes by sub accounts of FIIs to be discontinued with immediate effect
>Sub accounts issuing P-notes have applied for registration of FIIs: Sebi
>Until a final decision is taken on their being FIIs, sub accounts can continue as normal
>Both proprietary and corporate sub-accounts will be allowed to do business till final decision is announced.