SEBI welcomes smart money into India, but that should be clean: This was the message the market regulator M Damodaran conveyed to the investing community on Monday. He was speaking to a host of foreign institutional investors to clarify some finer details on SEBI’s proposals to limit use of participatory notes (PNs) to invest in India. ‘‘We do not want a market indefinitely having elements of non-transparency and, therefore, we want a situation where we know who is in our market, we know the quality of money that comes into our market and we are comfortable with both of those,’’ the SEBI chief said. ‘‘That is the purpose of which we are trying to discourage one category of PNs,’’ he added. Videoconferencing with FIIs, Damodaran said the regulator had enough number of responses to move ahead with its proposals which will be discussed at its next board meet on Thursday. He also said SEBI had cleared 16 FII applications during the day and all of those received since October 16. Citibank, which so far operated in the Indian market using the sub-account route, has got FII registration. Among the main points of Damodaran’s conference was that FIIs who run sub-accounts only for PN trades will have to discontinue the same. SEBI will allow proprietary sub-accounts to be allowed to register as FIIs. Market players welcomed the moves saying that under such rules proprietary trading by large foreign brokerages will be much more regulated.   more »