For updates visit


Indian Stock Market


D-Day for P-Notes; SEBI will take a final call on P-Notes today

Thursday, October 25, 2007

Its a Decision day for the P-Notes issue. Regulator SEBI will take a final call on the P-Notes in a meeting today.

At present, there are 34 entities which issue P-Note in India. 14 FIIs and 20 Sub-accounts invest in the markets via P-Note. 18 Sub-accounts have submitted letter of intent to convert in FIIs.

FIIs & Sub Accounts:
FII Registrations: 1119
FII Sub-Accounts: 3447

P-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
* As on July 31st, 2007

FII Sub-accounts
Morgan Stanley & Co: 2
Citigroup Global Mkts: 2
Goldman Sachs: 1
CLSA Merchant Bankers: 1
UBS Securities Asia: 1

SEBI has softened its stance on proprietary Sub-accounts. SEBI proposes the conversion of proprietary sub-accounts to FIIs and has given a transitionary period for the conversion.

SEBI had given a time limit of 24 hrs to submit a letter of intent for the conversion and said that the application should be made within a week.
Only 15 to 20% of sub-account assets are actually proprietary. Many hedge funds come in the market via properietary book. It is unlikely that SEBI will bring PN assets under 40% limit.

Posted by FR at 9:36 AM  

Catagories

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

IMPORTANT DISCLAIMER

Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.