The regulator said in a clarificatory note posted on its website on grandfathering of participatory note issuers who didn't meet the new regulations on foreign portfolio investors specially unregulated funds whose investment manager is well regulated. MUMBAI: The Securities and Exchange Board of India has allowed foreign portfolio investors who had issued participatory notes under the erstwhile regulations to hold the position till the date of expiry of such positions or till end of December 2020. Also, Dec 31, 2020 is sufficient time for such ODI holders to decide whether to comply with new KYC norms or wind up their positions." "This clarification is only a consequence of the recent changes on KYC rules which are applicable to ODI issuers and ODI holders from July 1. Earlier, offshore investors who took exposure to Indian securities under FII Regulations by subscribing to ODIs were permitted to continue to subscribe ODIs under the FPI Regulations that replaced FII Regulations in 2014.

Source: Economic Times June 29, 2016 17:46 UTC