SEBI allows FIIs to report on stock lending weekly

The Securities Exchange Board of India (SEBI) has relaxed disclosure norms for foreign institutional investors, pertaining to securities lent by them to entities abroad, to once a week from the earlier daily reporting system.

"On a review, it has been decided to modify the periodicity of these reports from daily submissions to weekly submissions. In accordance with this change in periodicity of reports, the FIIs shall now be required to submit the reports every Friday," SEBI said in a release.

FIIs have been submitting daily reports based on which disclosures have been made available for public dissemination by the SEBI twice in a week, one on Tuesday and another on Friday.

The new norms would be effective from 2 July 2010 and the first such weekly report would be submitted by 9 July 2010, SEBI said.

SEBI would now make public dissemination based on the FII reports every Tuesday and the first such weekly dissemination would be made on 13 July, SEBI said.

Accordingly, the FII, issuing the participatory note (PN), would be required to submit along with its weekly report an undertaking to the effect that any fresh short position would be immediately reported to SEBI.

FIIs are required to submit this information by the dedicated e-mail id odireporting@sebi.gov.in., the release added.