i Develop Stocks Advisory

No fresh disclosure clauses for PNs The Government on Friday ruled out more disclosure clauses for investment through Participatory Notes (PNs) for specific identification of investor. There is no such proposal under consideration of the Government for the present because at this point of time, it is felt that disclosure norms laid down under the SEBI (Foreign Institutional Investors) Regulations, 1995, for FIIs issuing PNs are adequate, Minister of State for Finance P K Bansal told Lok Sabha in a written reply. PNs are instruments through which unregistered entities invest in India through FIIs and their agents. Late last year, SEBI had announced certain curbs on this kind of investment. Margins: SEBI has specified the margins to be collected by the stock exchanges from brokers. However, the quantum, the form and the mode of collection of margins from clients is left to the discretion of the brokers, Bansal said in another reply. SEBI has advised stock exchanges to ensure that brokers provide daily report to each client, clearly bringing out his margin liability. It also advised the exchanges to commence public awareness programmes with special focus on the margin system, he said. NSDL has frozen 15.25 lakh accounts which have securities amounting to Rs 51,750 crore because of non-compliance of PAN requirement as on March 8, this year, Bansal said in another reply. CDSL has frozen 3.42 lakh accounts, which had securities worth Rs 10,981 crore in this connection, he said.