Well , making money is not as easy as the FIIs thought.
They have been caught because their bulls were running unexpectedly and our Indian bulls were not able to compete with them.
C'mon it is quite obvious……Rs vs $.
But anyways…..thank to the SEBI finally putting some hurdle for them.
I should not say it’s a hurdle, I should say putting some rules.
The Securities and Exchange Board of India (SEBI) on Thursday announced new rules for foreign investments through financial instruments such as Participatory Notes (P-Notes).
The market regulator has asked the Foreign Institutional Investors (FIIs) to wind up P-Notes for investing in derivatives within 18 months.
SEBI announced the decision after a meeting of the Board, which also approved imposing curbs on P-Notes for investing in spot market. The new norms will come into effect from Friday.
In derivatives, FIIs and their sub-accounts cannot issue fresh P-Notes and will have to wind up their current position in 18 months, he said.
In spot market, FIIs will not be allowed to issue P-Notes more than 40 per cent of their assets under custody. The reference date for calculating such assets will be September 30, SEBI said.
The provision will come into effect from close of trading hours on Thursday.
Those FIIs who have issued P-Notes of more than 40 per cent of their assets, could issue such instruments only if they cancel, redeem, or close their existing P-Notes. Those FIIs who have issued P-Notes less than 40 per cent of their assets under custody can issue additional instruments at the rate of five per cent of their assets.Well done SEBI !!! Being a TRUE Indian ,I liked it ……