Capital market regulator SEBI on Friday said stakeholders have started giving their feedback on its proposal to check overseas investments in the stock market, an issue that created a panic at the bourses.
"Feedback from market participants on PNs (Participatory Notes) is coming in and we will evaluate all the feedback," Sebi Whole Time Member G Anantharaman said at an investment advisory conclave.
Finance Minister P Chidambaram had sought to calm the foreign investors by assuring them that SEBI would hear them ahead of taking a decision on the proposals relating to Offshore Derivative Instruments by October 25.
"The proposed initiative is aimed at streamlining and rationalising PNs policy and it is in the interest of the market," Anantharaman said.
PNs allow foreign funds to invest in Indian stock market without having to register with SEBI. The regulator in a discussion paper brought out on Tuesday suggested curbing the issuance of P-Notes, an Offshore Derivative Instrument, by Foreign Institutional Investors.
He, however, said there was "no suggestion, indication or intention to abolish Participatory Notes (PNs)."
While backing the SEBI proposals, Chidambaram had said on Wednesday that these would become regulation with or without some modifications, but promised that rules for registration of FIIs would be simplified further.
The proposals had triggered a sharp fall of over 1,400 points in the bourses in the last three trading sessions, including over 438 points today.
"We want to broadbase and enable others to come upfront," Anantharaman said. SEBI Board will meet on October 25 to discuss the issue of PNs in the Indian market.
