Reuters Market Eye - SEBI's move to align rules for offshore derivative instruments (ODIs) with new foreign investment norms raises worries about flows.
Rules require ODIs to be issued only to investors from countries integrated into global financial systems such as via Bank for International Settlements.
SEBI also says ODI investors will not be allowed to have an "opaque structure" as defined by foreign investment rules.
That should not affect the bulk of ODIs, especially in popular participatory notes, but worries rise nonetheless, traders say.
"There are short-term worries after SEBI's notice on ODIs and these worries are being used to book some profits," a dealer said.
(Reporting by Himank Sharma)
