The Secretariat's Report states that "the regulatory framework was modified to enable participation of FIIs and mutual funds in IDRs". Japan would like to know whether this includes easing restrictions on FIIs. Please provide more details.
Also, Japan would like to know about the progress in the modifications.
Reply: In order to develop a liquid market for Indian depository receipts (IDRs) by encouraging participation by institutional investors, SEBI, vide an amendment in 2009 to the SEBI (FII) Regulations, 1995, had permitted participation by foreign institutions in IDRs Accordingly, Regulation 15(1) of the SEBI (FII) Regulations which lists the avenues for investment by FIIs was modified to include IDRs as well.
