No change in proposals on P-notes: Sebi

M Damodaran, chairman, Securities and Exchange Board of India (Sebi), today said there was no change in the draft regulations announced by the regulator last week on participatory notes (P-notes).

The draft, which said the current P-notes would have to be wound up in 18 months, was also cleared by the board of the regulator which met today.

Damodaran, while addressing the media a short while ago, said Sebi would review the position on the issue from time to time.

The reference date for the calculation of assets under custody (AUC) of foreign institutional investors (FIIs) for the issuance of P-notes has been set as September 30, 2007. The regulation on P-notes is effective October 25, Damodaran added.

P-notes can now be issued only to regulated entities in accordance with the FII regulation of 2004.

Pension funds, foundations, endowments, university funds, charitable societies, which may not strictly fit into the category currently, can now register as FIIs.

The board also cleared a proposal to have a separate exchange for the small and medium enterprise (SME) segment.