The Securities and Exchange Board of India (SEBI) said on Monday it is revising the rules for offshore derivative instruments (ODIs) to bring them in line with new foreign investment norms approved earlier this year.

According to the SEBI statement on Monday, ODIs will now have to be consistent with India's new foreign investment requirements, including that an investor be from a country whose central bank is a member of the Bank for International Settlements.

ODIs are investment products issued by foreign institutions to unregistered overseas investors that provide exposure to Indian markets through derivatives.

ODIs such as participatory notes are popular with foreign investors because they have reduced registration requirements. (Reuters)