FPIs seek three months more to implement Sebi diktat on monitoring DRs

Cite legal hurdles and challenges in implementing the circular in its present form

The Asia Securities Industry and Financial Markets Association (Asifma), a lobby group for foreign portfolio investors (FPIs), has asked the Securities and Exchange Board of India (Sebi) to postpone the diktat on monitoring foreign holding in depository receipts (DRs) by a further three months, citing legal hurdles and challenges in implementing the circular in its present form.

The new norms, which became applicable on April 1 after being postponed by a month, require designated depository participants or custodians to collect, monitor and report information every month on offshore derivatives instruments (ODIs) and DRs held by FPIs and those foreign entities