FIIs not satisfied by 18 months deadline

Capital Market Regulator SEBI has informed FIIs that the 18 month time limit set for winding down P notes issued by their sub accounts would not be relaxed. M Damodaran said many FIIs have proprietary sub accounts, which invest their own money. Such accounts are different from other sub accounts that are formed in other countries by unregistered investors.
Sebi chairman, Damodaran said that sub accounts purely for P note trading would not be allowed. He said that sub accounts that want to register should inform Sebi within 24 hours and send in their applications within a week. They will continue to operate as sub-accounts until they receive their registration as FIIs. He also said that single group could register as multiple entities.
FIIs were disappointed by the inflexible attitude of Sebi Chairman on 18 months deadline for winding down P notes issued by sub accounts. They also felt that ha has also failed to clarify a whole lot of issues including the basis of calculating their assets that will determine that ability of issuing P notes.
Brokers say that the market has factored in the P notes issue and there is a fair chance the pull back rally will begin.