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18 foreign investors issuing P-Notes respond to SEBI Chairman's offer - they want to register as FIIs

Wednesday, October 24, 2007

SEBI Chairman Mr Damodaran said that SEBI has managed to get letters of intent from 90% of P-Note issuing sub-accounts within 24 hours. These sub-accounts are described as proprietary sub-accounts. If they are interested in converting to FIIs, will send a letter of intent indicating that they intend to bring in our application, treated as an FII on such an application being registered and I would expect that application to be complete in all respects should reach our office within a week from now. We have some people telling us that some applications often take as long as 3 months to put an application in, he said.

At the end of the 24-hour deadline, SEBI received letters of intent from 18 P-Note issuing entities. A top SEBI official said it was a significant number considering only 34 entities were involved in issuing P-Notes. But what's not clear is how many sub-accounts linked to these 18 entities are interested in converting to FIIs.

There are now 1,119 registered foreign institutional investors and 3,447 registered sub-accounts against 1,077 FIIs and 3,314 sub-accounts at the end of August.
SEBI's draft circular mentions 34 entities involved in P-Note issuance. This number has risen from 28 at the end of July.

Most P-Note investments are made through five entities, which together control 60% of investments.

No. of FIIs No. of sub-accounts
August end 1,077 3,314
As on 23rd Oct 1,119 3,447

Notes Issued (Rs Cr)
Morgan Stanley: 55,401
Merrill Lynch Espana: 47,928
Citigroup Global Mkts: 45,018
Goldman Sachs & Co: 34,771
CLSA Merchant Bankers: 24,388
*On July 31st, 2007

Posted by FR at 9:16 AM  


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