CIRCULAR, CIR/IMD/FIIC/9/2013, dated July 09, 2013
To
All
Foreign Institutional Investors
through
their designated Custodians of Securities
1. The consolidated FDI policy
circular issued by the Department of Industrial Policy and Promotion, Ministry
of Commerce and Industry, effective from April 05, 2013, states that FII
investments in Security Receipts issued by Asset Reconstruction Companies
should be within the FII limit on corporate bonds prescribed from time to time.
2. Accordingly, the investments in
Security Receipts issued by Asset Reconstruction Companies by FII's shall be
reckoned against the extant Corporate Debt Limits.
3. The investments of FIIs in
Security Receipts shall be subject to terms and conditions as specified by the
Reserve Bank of India from time to time.
This
circular shall come into effect immediately. This circular is issued in
exercise of powers conferred under SEBI Section 11 (1) of the Securities and
Exchange Board of India Act, 1992, to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
market.
A
copy of this circular is available at the web page “F.I.I.” on our website www.sebi.gov.in.
The custodians are requested to bring the contents of this circular to the
notice of their FII clients.
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