The Securities and Exchange Board of India (SEBI) has issued a clarification in response to media reports suggesting a complete prohibition on Foreign Portfolio Investors (FPIs) from issuing Overseas Derivative Instruments (ODIs). SEBI confirmed this interpretation is incorrect. FPIs are only restricted from issuing ODIs where derivative instruments serve as the underlying asset. As of now, no ODIs with derivatives as the underlying exist. SEBI further clarified that ODIs referencing cash market securities remain permissible. This update ensures transparency and accuracy in understanding SEBI’s regulations regarding ODIs.
Securities and Exchange Board of India
PR No.35/2024
Clarification
An article has been carried in a section of media suggesting that SEBI has prohibited FPIs from issuing Overseas Derivative Instruments (ODIs). This is incorrect.
It is clarified that FPIs have only been barred from issuing ODIs with derivative instruments as the underlying. As on date, there are no ODIs with derivative instruments as the underlying.
It is further clarified that ODIs referencing cash market securities can continue to be issued.
Mumbai
December 18, 2024
