In a circular on 29 June, the Securities and Exchange Board of India issued a clarification stating that those who have subscribed to overseas debt instruments (ODIs) under foreign institutional investor regulations can continue to subscribe to ODIs under the foreign portfolio investor (FPI) regime, subject to the condition that they comply with regulation 22 of the SEBI (Foreign Portfolio Investor) Regulations, 2014, and meet the eligibility criteria as laid down by SEBI.
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ODI subscribers which do not meet the norms above, including unregulated funds whose investment manager is appropriately regulated, can continue to hold ODIs until the date of expiry of such positions or until 31 December 2020, whichever is earlier. However, such subscribers cannot take on new positions or renew their old positions.
SEBI has also clarified that from 1 August, new ODIs can only be issued to entities that comply with regulation 22 of the FPI regulations and meet the eligibility criteria as laid down by SEBI.
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
