Reporting of Offshore Derivative Instruments(ODIs)/ Participatory Notes(PNs) activity
Summary
This circular provides clarifications on the reporting format for Offshore Derivative Instruments (ODIs) and Participatory Notes (PNs). It grants an extension for the implementation of the new reporting format, requiring the first monthly summary report for September 2011 to be submitted by October 7, 2011. FIIs must continue using the existing reporting format until the new system is implemented.
Text
If an ODI is hedged with multiple types of Indian securities and left partly unhedged, it may be split in separate rows with each row for each Indian security and a blank column for the unhedged portion.
The current methodology of reporting F&O positions will be continued and the outstanding value of ODIs shall continue to be represented in notional terms.
The ODI issuers shall link hedges to the extent that such a link can be made.
The FIIs shall work out the linkages for all outstanding ODI positions as on September 30, 2011 and upload this report to SEBI by March 2012 along with the first six months’ lag transaction reports.
The column ‘Location of end beneficial owner of the Offshore Derivative Instrument’ in Annexure A shall state the country of the end beneficial owner.
For FII to FII ODI/PN activity, the reporting/ issuer FII shall provide the SEBI Registration No. of the subscriber FII in addition to the name of the FII.
The first monthly summary report shall be submitted for the month of September, 2011 before 7th October, 2011.
The first such transaction-wise details in Annexures shall be submitted in March 2012 along with the outstanding positions as on September 30, 2011 and thereafter with such six months’ lag.
Till such time the new reporting format is implemented, the FIIs shall continue to file the reports in the existing format.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with Regulation 20 and 20A of the SEBI (Foreign Institutional Investors) Regulations, 1995.
Source: SecMarx — Reporting of Offshore Derivative Instruments(ODIs)/ Participatory Notes(PNs) activity. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.