We don't approve or disapprove IPOs
17 March 2007
Ahead of the 32nd annual conference of the International Organisation of Securities Commissions, where regulators across the world discuss key regulatory issues, SEBI chairman, M Damodaran shares his views on issues like P-notes, real-estate IPOs and stock lending mechanism.
The SEBI Board has approved stock-lending mechanism and the structures for stock lending and short selling are in place.
CNBC-TV18 shares with domain-b, its exclusive interview with Damodaran:
What are your views on P-Notes?
I think it's necessary to understand the nature of the instrument. These are offshore derivative instruments issued outside India by registered FIIs to investors outside India.
What you can do is, with whoever you have a privity of contract of relationship, which your registered FIIs are asked to give as an undertaking so that they know who the holders of the Participatory notes are, the FIIs in terms of the FII regulations do it month after month. We have no reason to disbelieve every such statement that is made.