We gave enough time to FIIs to comply with norms: SEBI

Market regulator SEBI has said that it had given enough time to foreign institutional investors (FIIs) to comply with the disclosure regulations and several serious players had followed the norms.

"We have given them (FIIs) sufficient time (and) those who are serious have complied," Securities and Exchange Board of India (SEBI) chairman C B Bhave said, when asked about the impact of the regulator's decision to bar 197 FIIs and 342 sub-accounts from fresh trade.

He further said, last year the market regulator found that FIIs have evolved structure, which was not entirely compliant with regulations.

"So we investigated the matter further and in April we have given them a time limit of 6 months and those who were not complaint with the regulations have been asked not to operate in the market," it added.

Earlier this month, SEBI barred 197 foreign funds, including those managed by global financial conglomerates like HSBC, Deutsche Bank and Standard Chartered, and 342 sub- accounts from further trading in stock market.

These entities were barred from fresh trading for non-disclosure of holding structure to the regulator.

Replying queries on Coal India public offer, he said, "There is enough room to support such kind of paper and from the point of view the kind of flows coming into India, I think there is enough supply of paper as well. That money will chase existing paper. It is a good thing that lot of paper is coming into the market."

On questioning Satyam's founder-chairman Ramalinga Raju, who admitted to cooking up the company's account books in January, 2009, Bhave said, "There were few showcause notices which SEBI has issued-- one was to the accountants and one was to the officers in the company. Raju is part of the list of the notices that were issued to the officers of the company."

He further said that since these people were in custody and were not able to attend hearings, it couldn't proceed.

"We had got the permission of the court to question him even while they were in custody. Questioning can be done only when they are free to come here. So that is the process that will again start."