SEBI introduces measures to address regulatory arbitrage with respect to Offshore Derivative Instruments (ODIs) and FPIs with segregated portfolios vis-à-vis FPIs.

The Securities and Exchange Board of India (SEBI) has rolled out new measures aimed at addressing regulatory arbitrage in the context of Offshore Derivative Instruments (ODIs) and Foreign Portfolio Investors (FPIs) with segregated portfolios. This includes updates to the current regulations, such as stricter conditions for issuing ODIs, expanded disclosure requirements for certain ODI subscribers, and specified exemptions for certain entities. Additionally, the circular outlines transitional provisions to aid compliance and sets clear timelines for implementation.