Securities And Exchange Board Of India - Subsection
Section 15A(7) in Securities And Exchange Board Of India (Foreign Institutional Investors) Regulations, 1995
(7)Where offshore derivative instruments issued by or on behalf of a sub account are outstanding as on the thirtieth day of September 2007 and steps have been taken by the subaccount to obtain registration as a foreign institutional investor as on the date of commencement of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations, 2008, sub-regulations (4) and (5) and the provisos thereto shall apply as if the sub-account were a foreign institutional investor on the said date.Explanation I: For the purpose of this regulation, -(i)`offshore derivative instrument' means any instrument, by whatever name called, which is issued overseas by a foreign institutional investor against securities held by it that are listed or proposed to be listed on any recognised stock exchange in India, as its underlying;`assets under custody' on a particular date, in relation to a foreign institutional investor or a sub-account, means the value of assets of the foreign institutional investor which are in custody of its custodian.Explanation II:- For the purposes of sub-regulation (2) and the proviso thereto, the expression "person regulated by an appropriate foreign regulatory authority" means and includes the following, namely:-(i)any person that is regulated/supervised and licensed/registered by a foreign central bank;(ii)any person that is registered and regulated by a securities or futures regulator in any foreign country or state;(iii)any broad based fund or portfolio incorporated or established outside India or proprietary fund of a registered foreign institutional investor or university fund, endowment, foundation, charitable trust or charitable society whose investments are managed by a person covered by clauses (i), or (ii) above.]
