SEBI extends deadline for framework on issuance of ODIs by FPIs to November 17 this year

Securities and Exchange Board of India has offered more time to Offshore derivative instrument (ODI) subscribers for granular disclosure compliance. In a circular issued on Friday regulator extended the timeline to comply, till November 17, 2025. The previous timeline was expiring on May 17, 2025. ODIs in common parlance are also called participatory notes or P-Notes. As per SEBI circular, 'Based on representations received from market participants and in order to ensure smooth implementation of the said circular, it has been decided to extend the above timeline'. In its circular issued in December last year, SEBI had prescribed that all ODI subscribers that hold concentrated holding or large investment in a single corporate group to make more granular disclosure. The circular was to align the ODI regulation at par with FPIs and remove the regulatory arbitrage. And also, to curb the misuse, if any. The December circular prescribed that, ODI subscriber having more than 50% of its equity ODI positions of a single Indian corporate group or ODI subscriber having equity positions worth more than Rs 25,000 Cr in the Indian markets have to make granular disclosure. The circular proposed to prohibit FPIs from issuing ODIs with derivatives as the underlying or using derivatives to hedge their ODIs in India.

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