By IANS
Mumbai : Indian markets regulator Securities and Exchange Board of India (SEBI) Chairman M. Damodaran Thursday said overseas pension, endowment, university and charitable funds will now be allowed to register themselves as foreign institutional investors (FIIs).
The SEBI chairman said there is no change or dilution on `know your customers’ (KYC) norms for registration as FIIs.
The chairman also allowed hedge funds to invest in Indian equities but with a condition that they have to be regulated in the originating country.
He further said single individual investors could not hold more than 49 percent on broad-based funds. Broad-based funds have to consist of at least 20 investors and the fund managers should have a one-year track record.
SEBI also said that FIIs have to unwind their positions on indirect investment instruments such as participatory notes within 18 months starting Friday.
Damodaran, however, clarified that participatory notes can continue investing in Indian markets till they are registered as foreign institutional investors.
Participatory notes can only be issued to regulated entities, the SEBI chief confirmed.
SEBI will review participatory notes positions from time to time.
SEBI will again meet on Sep 30 to discuss various issues that include discussions on calculations on and rollover period of derivative instruments.