Sebi notifies amended FII regulations and code of conduct

Securities and Exchange Board of India (Sebi) has notified the amended foreign institutional investors (FIIs) regulations and code of conduct seeking more disclosures about investment in off-shore derivative instruments.

FIIs should fully disclose information about the terms of and parties to off-shore derivative instruments like participatory notes, equity-linked notes entered by them, sub-accounts and affiliates relating to securities listed or proposed to be listed on stock exchange in India, Sebi said in a communication after publication of regulations in gazette.

The notified code of conduct requires FIIs and its key personnel to observe high standards of integrity, fairness and professionalism in their dealings in the Indian securities market. They should ensure confidentiality in respect of trades done on its own behalf and/or on behalf of its sub-accounts/clients, Sebi said. FIIs should segregate accounts for its own money and maintain arms length relationship between its funds management investment activity, it added.