SEBI has issued a Consultation Paper on investment by Foreign Investors through Segregated Portfolios/ P-notes/ Offshore Derivative Instruments. Investments made by foreigners via Offshore Derivative Instruments (erstwhile P-notes)or through segregated portfolios of Foreign Portfolio Investors (FPIs) are currently not subject to the same set of disclosure and other regulatory requirements as regular FPIs under theSEBI (Foreign Portfolio Investors) Regulations, 2019 (“FPI Regulations, 2019”).
This includes the additional disclosure requirements on objectively identified FPIs under the SEBI Circular dated August 24, 2023. The proposals in this paper seek to address this regulatory arbitrage. Public comments are invited on these proposals. The comments/ suggestions should be submitted latest by August 27, 2024.
