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Sebi asks FPIs to report bets on hybrid securities separately

FPI investments are classified as either debt or equity depending on the type of the security in which the FPIs transact

Press Trust of India  |  Mumbai 

Sebi
Sebi

The (Sebi) has said (FPIs) should report their investment in hybrid securities separately and has asked the depositories to make necessary arrangements for this.
 
Currently, the daily FPI net investment data and the FPI Assets Under Custody (AUC) data are disseminated by the depositories (and CDSL) for equity and debt

At present, FPI investments are classified as either debt or equity depending on the type of the security in which the transact.
While are permitted to invest in real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs) which are classified as hybrid securities, presently, the said investments are not reflected in the daily FPI net investment data or the monthly/fortnightly FPI AUC data. Hybrid securities generally combine both debt and equity characteristics.

In a circular dated November 15, Sebi said, "In order to capture FPI investment data in hybrid securities, a third category termed as 'hybrid security' shall be created for the purpose of capturing and disseminating FPI investment data in Hybrid securities."

Sebi asked depositories, and CDSL, to put in place the necessary systems for the daily reporting by the custodians of the and disseminate on their websites, the AUC of the in debt, equity and hybrid securities. This circular has come into effect immediately, Sebi said.

First Published: Fri, November 17 2017. 00:00 IST
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