Bookmark Bookmark

SEBI plans to tighten norms for Participatory Notes

SEBI plans to tighten norms for Participatory Notes

  • Securities and Exchange Board of India has planned to change the norms for the Participatory Notes.
  • The SEBI decision on P-Notes comes after the recommendations of the Special Investigation Team on black money, market watchdog.
  • The SIT has been appointed by the Supreme Court in 2015. The SIT recommended SEBI to strengthen its norms on P-Notes.
  • The board plans to tighten the requirements for issuance and transfer of P-Notes.
  • As per the board, the investor will be responsible for ensuring compliance with anti-money laundering law.
  • The new norms made mandatory for the issuers of P-Notes to file Suspicious Transaction Reports with the Financial Intelligence Unit.
  • Participatory Notes (P-Notes):-
    • Participatory Notes are the instruments issued by the registered foreign institutional investors to overseas investors.
    • These notes are given to the investor, who wants to invest in the Indian stock markets without registering themselves with the Securities and Exchange Board of India (SEBI).
    • SEBI is the India's market regulators, who permitted foreign institutional investors to register and participate in the Indian stock market in 1992.
  • Securities and Exchange Board of India (SEBI):-
    • The SEBI is the market regulator in India.
    • It was established in the year 1988.
    • SEBI got statutory powers on 12 April 1992 through the SEBI Act, 1992.
    • It is headquartered in Mumbai.
    • It has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.
Take a quiz on what you read Start Now

You might be interested:

India signs multilateral agreement on tax Information sharing

India signs multilateral agreement on tax Information sharing As per the OECD, India and several other countries have signed several key agreements in Beijing, China. The countries who have signed mu ...

6 years ago

Banking Awareness Capsule 24: What is CASA ratio?

Banking Awareness Capsule 24: What is CASA ratio? Dear Aspirant, In this article we are going to learn about CASA ratio. What is CASA ratio? Different kinds of deposits such as current ...

6 years ago

Vocab Express-8

Vocab Express-8 Dear Aspirants, In this article, we will work towards enhancing your vocabulary by introducing 5 new words on a daily basis. These English Words or Phrases frequently appear in major c ...

6 years ago

Banking Awareness Capsule 23: What is CIBIL and How does it function?

Banking Awareness Capsule 23: What is CIBIL and How does it function? Dear Aspirant, In this article we are going to learn about CIBIL. What is CIBIL? The Credit Information Bureau (India) Ltd, better ...

6 years ago

Daily News Digest, 12th May 2016

Shashank Manohar elected as the chairman of International Cricket Council  Shashank Manohar has been elected unopposed as the first independent Chairman of the International Cricket Council ...

6 years ago

FM introduces Bill to fast track recovery of bad loans

FM introduces Bill to fast track recovery of bad loans Finance Minister Arun Jaitley has introduced the Enforcement of Security Interest and Recovery of Debt Laws and Miscellaneous Provisions (Amendm ...

6 years ago

Provide your feedback on this article: