Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) (Second Amendment) Scheme, 2005 - Amendments in paragraph 5 and insertion of paragraph 3(1)(Ba) - GSR 581(E) - Foreign Exchange Management

Notification Dated 14-9-2005 GSR 581(E)- Central Government hereby amend the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 , namely:- 1. This Scheme may be called the issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) (Second Amendment) Scheme, 2005. 2. The Scheme shall be deemed to have come into force from the date of publication of Notification. 3. In the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 ; After paragraph 3(1)(B), the following sub-paragraph shall be inserted, namely : 3(1)(Ba) The unlisted companies issuing Global Depository Receipts/Foreign Currency Convertible Bonds that have taken verifiable effective steps, before 31st August, 2005 would be exempt from the requirement of prior or simultaneous listing provided these companies complete their issues latest by 31st December, 2005. Explanation : Effective steps , for the above purpose, will mean the following : (a) That the company has completed due diligence and filed offering circular in the overseas exchange(s); or (b) That approval of overseas exchange(s) has been obtained; or (c) That the payment of listing fees is made; or (d) Approval of the Reserve Bank of India under Foreign Exchange Management Act, 1999 , where applicable, for meeting issue related expenses has been obtained. It is clarified that private placements of issues, where no offering circular was placed before the overseas exchange(s), would not qualify for effective steps . 4. After paragraph 5, sub-paragraph (4)(ca), the following sub-paragraph shall be inserted, namely : 5(4)(ca)(i) Listed companies - The companies issuing Global Depository Receipts that have taken verifiable effective steps, before 31st August, 2005 would be exempt from the requirement of the pricing guidelines at para 5(4)(ca) provided these companies complete their issues latest by 31st December, 2005. Explanation : Effective steps, for the above purpose, will mean the following : (a) That the company has completed due diligence and filed offering circular in the overseas exchange(s); or (b) That approval of overseas exchange(s) has been obtained; or (c) That the payment of listing fees is made; or (d) Approval of the Reserve Bank of India under Foreign Exchange Management Act, 1999 , where applicable, for meeting issue related expenses has been obtained. It is clarified that private placements of issues, where no offering circular was placed before the overseas exchange(s), would not qualify for effective steps. 5. After paragraph 5, sub-paragraph (4)(e)(i), the following sub-paragraph shall be inserted, namely : 5(4)(e)(i)(a) Listed companies - The companies issuing Foreign Currency Convertible Bonds that have taken verifiable effective steps, before 31st August, 2005 would be exempt from the requirement of the pricing guidelines at para 5(4)(e)(i) provided these companies complete their issues latest by 31st December, 2005. Explanation - Effective steps , for the above purpose, will mean the following : (a) That the company has completed due diligence and filed offering circular in the overseas exchange(s); or (b) That approval of overseas exchange(s) has been obtained; or (c) That the payment of listing fees is made; or (d) Approval of the Reserve Bank of India under Foreign Exchange Management Act, 1999 , where applicable, for meeting issue related expenses has been obtained. It is clarified that private placements of issues, where no offering circular was placed before the overseas exchange(s), would not qualify for effective steps.