(SEBI) has relaxed disclosures for Participatory Notes (PN) issuing Foreign Institutional Investors (FIIs) on short positions. The new norm effective from 2 July, FIIs will be required to report lending of securities on a weekly basis.
As per the new norm, FIIs will put out disclosures on every Friday while public dissemination of disclosure will be on every Tuesday.
The market regulator has made it mandatory that those FIIs issuing PN will be required to take an undertaking to report any fresh short position to SEBI immediately.
Earlier, FIIs were required to report about lending of securities to entities abroad and give disclosures on a daily basis.
PNs have not reported shorts in last one year. Its value has grown 54% while FII has increased 41% in last one year. Total PN value as on May 2010 is Rs 1,59,927crore. PN value 15% of total FII at Rs 8,83,379 crore.
