Mumbai, Dec. 30 (PTI): Market regulator Sebi today allowed French institutional investor Societe Generale (SocGen) to issue overseas derivative instruments, revoking about a year-long ban on the FII.

“Interim direction issued against Societe Generale stands revoked with immediate effect. It is directed to issue offshore derivative instruments,” the Securities and Exchange Board of India said.

In January, Sebi had banned Societe Generale from issuing overseas derivative instrument for providing wrong information about Hythe Securities to which it issued such instruments. The market regulator had asked the FII to explain why its registration in India should not be cancelled for providing false data on issuing a financial instrument, which enabled an overseas entity to invest in shares of Reliance Communications.

The Sebi order said Societe Generale had undertaken steps to validate its systems and processes to ensure that true and correct reports of its offshore derivative instruments (ODI) are furnished to the market regulator.

Sebi, however, warned that any misrepresentation or wrong reporting by the French FII would be “viewed seriously”.

ODIs, which are not registered with Sebi, are investment vehicles used by foreign investors for an exposure in Indian equities or equity derivatives.

Meanwhile, the sensex surged for the second straight session today, moving up 133 points on value buying in blue chips such as Infosys and HDFC. The BSE barometer ended the day with a smart gain of 133.04 points at 20389.07. The Nifty ended at 6101.85, up 41.50 points, or 0.68 per cent, from its previous close.

Marketmen said investors showed optimism as they carried forward their positions in the derivative sector on the settlement day.