SEBI warns of stern action against lending shares overseas

SEBI would take strict actions against illegal overseas lending and borrowing of Indian securities by FIIs. The regulatory body said in a release that it would not allow the overseas lending and borrowing activity of FIIs as it is not in the favor of cash market in India. It would give a vigil watch to such activities and may take more measures to deal with the lending/borrowing by FIIs.

The security and exchange board of India already asked FIIs to provide details of sub accounts and securities held by them. The detail would be available on the website of SEBI.

SEBI chairman, Mr C.B. Bhave said that the body had completely disapproved the FIIs. The date in this regard can be fetched from the board’s website from Tuesday. SEBI is committed to bring more transparency in the system by making stern laws for FIIs. The legal adviser of FII’s on the other hand said that it is difficult to monitor any borrowings or transactions beyond the FII level as it includes other entities which are out of purview of SEBI.

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