Securities And Exchange Board Of India - Subsection
Section 22(1) in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014
(1)No foreign portfolio investor may issue, subscribe to or otherwise deal in offshore derivative instruments, directly or indirectly, unless the following conditions are satisfied:(a)such offshore derivative instruments are issued only to persons who are regulated by an appropriate foreign regulatory authority;(b)such offshore derivative instruments are issued after compliance with `know your client' norms:(c)[ such offshore derivative instruments shall not be issued to or transferred to persons who [do not satisfy the conditions specified in regulation 4] [Inserted by Notification No. SEBI/LAD-NRO/GN/2017-18/004, dated 29.5.2017 (w.e.f. 7.1.2014).].]Provided that those unregulated broad based funds, which are classified as Category II foreign portfolio investor by virtue of their investment manager being appropriately regulated shall not issue, subscribe or otherwise deal in offshore derivatives instruments directly or indirectly:Provided further that no Category III foreign portfolio investor shall issue, subscribe to or otherwise deal in offshore derivatives instruments directly or indirectly.
