Sebi proposes ways for deregistered offshore funds to dispose of securities

India's markets regulator proposed late on Wednesday ways in which offshore funds whose India licences have expired can dispose of securities they hold, according to a discussion paper issued on the regulator's website.

A discussion paper is the first step taken by the Securities and Exchange Board of India (SEBI) before it finally changes its rules for market entities.

Until now, there has been no mechanism for offshore funds to liquidate their holdings after their licences expire.

There are 55 offshore funds whose India licences have expired and they hold securities worth 3.3 billion Indian rupees ($39.77 million), SEBI said.

In a separate paper the regulator proposed that offshore funds be required to report any material changes such as in the structure of funds, their ownership or control within 30 days.

Presently offshore funds need to report such changes within seven working days.