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Circular No. FITTC/CUST/14/2001
October 31, 2001
To
All Foreign Institutional Investors
and
Custodians of Securities
Dear Sir / Madam,
Sub: Issuance of Derivative Instruments
by Registered Foreign Institutional Investors (FII).
It has came to the notice of SEBI that
some FIIs are issuing derivative/financial instruments against underlying
Indian securities. These instruments are known by various names such as
Participatory Notes, Equity-Linked Notes, Capped Return Notes, Participating
Return Notes etc. With a view to monitoring the investment by FIIs through
these derivative / financial instruments, it has been decided that FIIs
may report issuance / renewal / cancellation / redemption of the aforesaid
instruments to SEBI with immediate effect as per the format enclosed as
Annexure.
It is further advised that this
report shall be submitted by only those FIIs which issue such instruments.
Further, these reports are to be submitted only on issuance / renewal /
cancellation / redemption of the aforesaid instruments and only for the
month during which the FII has issued / renewed / cancelled / redeemed
the aforesaid instruments. It is clarified that FIIs that have not
issued such instruments or have no transactions during the month in respect
of such derivative instruments are not required to submit a report to SEBI.
The FIIs, are requested to submit these
reports on a monthly basis within a week of the end of the month, duly
signed / approved by the compliance officer.
The reports may be submitted by email
(email id : fittc@sebi.gov.in
) or by fax (91-22- 284 5776).
These instructions are issued under
regulation 20 of SEBI (Foreign Institutional Investors) Regulations, 1995
and shall come in force with effect from the month of October 2001.
A copy of the circular is available
at the web page "Foreign Institutional Investors" on our website www.sebi.gov.in
. The custodians are requested to bring the contents of this circular to
the notice of their FII clients.
Yours faithfully,
P. GUPTA
General Manager
FITTC DEPARTMENT
EMAIL: pgupta@sebi.gov.in
WEB-SITE:www.sebi.gov.in
FAX NO: 91 22 2845776
Encl. : Annexure
Annexure to Circular no. FITTC/14/2001
dated October 31, 2001
REPORT ON FOREIGN DERIVATIVE INSTRUMENTS
ISSUED BY FOREIGN INSTITUTIONAL INVESTORS/SUB-ACCOUNT
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| Report
No.________ for the month of_________________ |
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| FII
NAME |
| FII
REGISTRATION NO. |
| SUB
ACCOUNT NAME
(if applicable) |
| SUB-ACCOUNT
CODE
(if applicable) |
|
| A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
| Name
/ type of instrument issued |
Name
of Indian company |
Nature
of underlying securities |
Name
and nationality / place of incorporation of the investor* |
Issue
Date |
Face
Value |
Maturity
Date |
Maturity
Value |
Number
/ Quantity of Derivative Instruments |
Quantity
underlying Indian securities* |
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opening
balance |
issued
/ renewed |
redeemed
/ canceled |
closing
balance |
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| Date
: |
Signature
and name of compliance officer
Name of FII |
| *
These details should be provided in respect of the closing balances of
the derivative instruments |
Annexure to Circular No. FITTC/14 /2001 dated October
31, 2001
EXPLANATORY NOTES TO REPORT ON FOREIGN DERIVATIVE INSTRUMENTS ISSUED
BY FOREIGN INSTITUTIONAL INVESTORS / SUB ACCOUNTS
|
ITEM |
EXPLANATION |
| |
Report No. |
A running serial
number is to be given (1,2,3,…..) |
| |
FII Name |
|
| |
FII Regn. No. |
As mentioned
in registration certificate issued by SEBI. |
| |
Sub-Account
Name
(if applicable) |
Name of the
Sub-Account as mentioned in SEBI registration/renewal letter |
| |
Sub-Account
Code |
Sub-Account
Code as mentioned in SEBI registration/renewal letter |
| A |
Name/type of
instrument issued |
Name / type
of derivative instrument issued - as given by the issuer FII. |
| B |
Name of Indian
company |
Name of Indian
company/companies against whose securities the instrument is issued. |
| C |
Nature of underlying
securities |
Nature of underlying
securities whether equity/ debt/ bond/ derivatives (If possible, ISIN number
may also be given) |
| D |
Name and nationality
/ country of incorporation of the investor |
Name and nationality
of the investor of the instruments.
In case of corporate entities /trusts/funds,
etc. the country of incorporation should be mentioned.
(These details should be provided in
respect of the closing balances of the derivative instruments) |
| E |
Issue Date |
Date of issue
/ renewal of the instrument. |
| F |
Face Value |
Face value
for which the instrument is issued/renewed (indicate currency also). |
| G |
Maturity Date |
Date on which
instrument is due for renewal or redemption/cancellation. (if any). |
| H |
Maturity Value |
Value on redemption/maturity
of instrument (if any). |
| I |
Number / quantity
of instrument |
Number of instruments/units
covered under the transaction.
-
Issue of new instrument
-
Renewal of instrument already issued
-
Redemption/cancellation of instrument.
|
| J |
Quantity of
underlying Indian securities |
Total number
of securities of Indian company/companies against which the instrument
is issued.
(These details should be provided in
respect of the closing balances of the derivative instruments) |
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