TestCloud
Prep • Practice • Perform
Log In

SEBI Extends ODI Compliance Deadline to November 17, 2025.

Banking & Finance | Dated: 24 May 2025

In May 2025, the Securities and Exchange Board of India (SEBI), based in Mumbai, Maharashtra, extended the compliance deadline for its revised Offshore Derivative Instruments (ODIs) framework. The new deadline for Foreign Portfolio Investors (FPIs) is November 17, 2025, extended from the earlier date of May 17, 2025.

🎯 Key Highlights:

  • - The updated regulations aim to enhance transparency and strengthen investor accountability by imposing stricter disclosure requirements and compliance measures for FPIs issuing ODIs.
  • - This extension was granted following requests from market participants seeking additional time to ensure a smooth transition to the revised regulatory framework.
  • - In December 2024, SEBI introduced the new ODI framework to harmonize regulatory practices between ODIs and FPIs, aiming to close gaps and prevent regulatory arbitrage in the Indian securities market.

💡 Other Important Facts:

  • (i) Under the revised disclosure requirements, ODI subscribers must reveal detailed ownership information down to the natural person level if their equity ODI positions exceed 50% exposure to a single Indian corporate group or surpass Rs 25,000 crore overall. This applies even if holdings are through multiple FPIs or entities with common ownership or control.
  • (ii) The framework prohibits FPIs from issuing ODIs that have derivatives as underlying assets. Moreover, derivatives cannot be used to hedge ODI positions. ODIs must be backed only by non-derivative securities and fully hedged on a one-to-one basis.
  • (iii) Regarding registration, FPIs issuing ODIs must obtain a separate registration marked with the suffix “ODI” under the same Permanent Account Number (PAN). However, no new registration is needed if ODIs are backed solely by government securities. Exemptions from granular disclosures apply to government-related investors, Public Retail Funds (PRFs), and Exchange-Traded Funds (ETFs) with less than 50% exposure to Indian equity markets.

📚 Test Your Knowledge:

Which regulatory body extended the compliance deadline for the revised ODI framework to November 17, 2025?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson: Tuhin Kanta Pandey
  • Headquarter : Mumbai