TMI BlogPurchase/Sale of Shares and/or Convertible Debentures by SEBI registered Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dealers is invited to Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 issued vide Notification No. FEMA.20/2000-RB dated May 3, 2000. In terms of Regulation 5(2) read with clause 1 (1) of Schedule 2 thereof, a SEBI registered FII may apply to the Reserve Bank for grant of permission to purchase shares or convertible debentures of an Indian company under Portfolio Investment Scheme (PIS). 2. It has now been decided to permit SEBI registered FIIs/ sub- accounts of FIIs to buy/sell equity shares/debentures of Indian companies (excluding companies engaged in the print media sector), units of domestic mutual funds,dated Government Securities and Treasury Bills through stock exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 6. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully F.R.Joseph Chief General Manager ANNEXURE {AP (DIR Series) Circular No. 53 dated December 17, 2003} 1. A SEBI registered FII / approved sub-account is permitted to open a Foreign Currency denominated Account and / or a Special Non-Resident Rupee Account and to transfer sums from the foreign currency account to the rupee account for making genuine investments in the securities in terms of the SEBI (FIIs) Regulations, 1995. The sums may be transferred fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable ceiling and the Indian company is permitted to issue such shares provided that: (i) in the case of public offer, the price of shares to be issued is not less than the price at which shares are issued to residents and (ii) in the case of issue by private placement, the price is not less than the price arrived at in terms of SEBI guidelines or guidelines issued by the erstwhile Controller of Capital Issues, as applicable. Purchases can also be made of PCDs/FCDs/Right Renunciations/Warrants/Units of Domestic Mutual Fund Schemes. 5. FII shall not engage in short selling and shall take delivery of securities purchased and give delivery of securities sold. There shall be no squaring off of transactions during the no-delivery per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffected only through their Special Non-Resident Rupee Account subject to payment of relevant taxes. The Authorised Dealer may keep proper records of the sub account and submit them to Reserve Bank as and when required. 9. SEBI registered FIIs/sub-accounts may keep with the Trading Member/ Clearing Member amount sufficient to cover the margins prescribed by the Exchange / Clearing House and such amounts as may be considered necessary to meet the immediate needs. 10. A daily statement in respect of all transactions (except derivative trade) should be submitted in floppy/soft copy in the prescribed format directly to the Chief General Manager, Exchange Control Department, Reserve Bank of India, Foreign Investment Division, Central Office, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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