Compliance with circular dated April 15, 2010
Summary
This circular mandates that Foreign Institutional Investors (FIIs) must submit required structural declarations by September 30, 2010. Non-compliant entities are prohibited from taking fresh positions in cash and derivatives markets effective October 1, 2010. SEBI will publish a list of non-compliant entities on its website while custodians and stock exchanges are instructed to disseminate the circular's contents.
Text
SEBI had mandated all registered FIIs to provide the requisite declarations and the undertakings about their structures to SEBI by September 30, 2010.
those entities that do not file the requisite information by the stipulated date shall not be able to take fresh positions in the cash as well as the derivatives market w.e.f. October 01, 2010.
w.e.f. October 01, 2010 the FIIs and sub-accounts that have not complied with the above mentioned requirements will not be permitted to take fresh positions in cash and derivatives markets while they can retain their current positions or sell off/ unwind.
SEBI shall place the list of the non compliant entities on the SEBI website – under tab- Statistics- Foreign Institutional Investors- List of non compliant entities.
The custodians are requested to bring the contents of this circular to the notice of their respective FII clients.
The Stock Exchanges shall bring the contents of this circular to the attention of its trading and clearing members.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Compliance with circular dated April 15, 2010. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.