"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," SEBI chairman M Damodaran said.

He said on Monday during a video conference with FIIs that sub-accounts issuing PNs wanting to convert to FIIs must inform SEBI within 24 hours and apply within a week.

"If you are interested in converting to FIIs, send to us within 24 hours of this conference, a letter of intent indicating that we intend putting in our applications. I would expect that such applications should reach our office within a week," he had said.

The market regulator had floated a discussion paper to curb participatory notes to check unregulated entities investing in Indian capital markets.

The proposal, which seeks to wind up derivatives-based PNs in 18 months and impose limit on such instruments based in assets under management of FIIs, will come up for discussion on Thursday at the Sebi's board meeting in Mumbai.

Refusing to comment on the outcome of the meeting, Damodaran said: "I cannot guess what will happen tomorrow. The board will meet and will take a final decision."

There are over 1,100 FIIs presently registered with SEBI. Of these, 34 deal in participatory notes and have set up proprietary sub-accounts to deal with these instruments.