Mumbai: India's stock market regulator has been receiving feedback on its plan to curb the use of participatory notes by overseas investors ahead of a meeting on October 25 on the issue, a board member said on Friday. On Tuesday, the Securities and Exchange Board of India (SEBI) released proposals to limit the use of participatory notes, which can be bought by foreigners to get exposure to Indian shares without registering as a foreign institutional investor (FII).
"We have been receiving the feedback on the paper and the SEBI board will discuss it next Thursday," board member G. Anantharaman told Reuters, adding the meeting would be held in Mumbai.
The SEBI plan, which has been endorsed by the finance minister, has caused shares to tumble this week on worries of a sudden withdrawal of foreign funds from the market.
At 0927 GMT on Friday, the 30-share BSE index was down 1.6 per cent, and down 7.1 per cent from Tuesday's close, before the recommendations were released.
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