Sebi may liberalise norms for issuing offshore derivative instruments

P-notes with derivatives as underlying may be allowed

The Securities and Exchange Board of India (Sebi) may liberalise norms for issuing offshore derivative instruments (ODIs), allowing foreign portfolio investors (FPIs) to issue these instruments with derivatives as underlying if they take up a separate registration specifically for ODI issuances.

The new norms may revive the moribund ODI route in India and bring cheer to foreign investors who will not need to register as FPIs to take derivative bets in India. The FPIs will be able to take derivative positions up to 5 per cent of market-wide position limit without the need to hedge their underlying positions. Sebi, for