In the past two years considerable developments have taken
place on the Foreign Portfolio Investors ("FPI") front.
There have been changes to the norms governing FPIs that have
impacted the permitted investments by them in India. Both
Securities and Exchange Board of India ("SEBI") and the
Reserve Bank of India ("RBI") have been making joint
efforts to develop this market in India.
Offshore Derivative Instruments ("ODI") and
Participatory Notes ("P-Notes") market, being entirely
offshore, the regulations have been amended keeping in mind the
impact that these products may create on Indian securities markets.
SEBI has issued circulars, to align the eligibility criteria of ODI
subscribers with the eligibility criteria under Regulation 4
(Eligibility criteria for FPIs) of the SEBI (Foreign Portfolio
Investors) Regulations, 2014 ("FPI Regulations").
