The regulator had in a discussion paper proposed curbing issuance of Participatory Notes - a move which had sent the stock market into a tailspin last week.
However, Finance Minister P Chidambaram has already indicated that the SEBI proposals would become regulations "with or without modifications."
Damodaran too had hinted on Monday during an interaction with FIIs that the proposals would become regulations, saying: "We believe that responses we have on board at this point in time, are adequate for us to take the process forward, in terms of the inputs received and those that we might receive."
SEBI, had on Monday, given sub-accounts issuing P-Notes 24 hours to convey their willingness to register as Foreign Institutional Investors.
The move to take them on board as FIIs is aimed at checking the flow of anonymous money into the equities market.
P-Notes are instruments like contract notes issued by FIIs to overseas investors who cannot directly invest in equity market as they are not registered.
Out of over 1,100 FIIs registered with SEBI, only 34 have been issuing PNs.
"We have 34 P-Note issuing entities. Out of them, some are already FIIs. Those sub-accounts that were issuing P-Notes have all applied for conversion... Everyone who we expected to write to us, have all written," Damodaran said at a function in the national capital today.
