Off shore derivative instruments restricted to regulated counterparties, with KYC required and prohibition on downstream transfers to unregulated persons.
The amendment inserts a regulation permitting FIIs and sub accounts to issue, deal in or hold off shore derivative instruments such as Participatory Notes and Equity Linked Notes against Indian listed or proposed securities only in favour of entities regulated in their home jurisdiction, subject to know your client requirements; existing instruments issued to unregulated persons before commencement will expire on maturity or within five years. FIIs and sub accounts must ensure no downstream issuance or transfer of these instruments to persons other than regulated entities.

Nomination rights expanded to include governments, local authorities, office-holders and religious or charitable trusts, altering mutual fund nomination scope.
The amendment broadens nomination under the Fourth Schedule to allow nomination in favour of the Central Government, State Government, a local authority, any person designated by virtue of his office, and a religious or charitable trust, and revises the instruction qualifying "trust" to exclude religious or charitable trusts from the prior reference before "society."

Supersession extended: governing board remains under administrator to complete elections and demutualisation and corporatisation processes.
The regulatory authority extends the period of supersession of the Governing Board for a further six months and directs that the incumbent Administrator shall continue to exercise and perform all powers and duties of the Governing Board to allow completion of corrective measures, the election process for a new Governing Board, and the processes of demutualisation and corporatisation.

Renewal of recognition for a regional stock exchange subject to settlement guarantee fund approval and inspection compliance.
SEBI grants renewal of recognition to Jaipur Stock Exchange Ltd. under the Securities Contracts (Regulation) Act, 1956 for one year from 9 January 2004 to 8 January 2005, subject to conditions: the Exchange shall commence trading only after obtaining SEBI's final approval for a Settlement Guarantee Fund/Trade Guarantee Fund, and shall comply with the suggestions of the SEBI inspection report communicated to the Exchange.

Renewal of recognition granted to Vadodara Stock Exchange, subject to compliance with inspection report observations and conditions.
Renewal of recognition is granted to Vadodara Stock Exchange Ltd. under the Securities Contracts (Regulation) Act for a one-year period in respect of contracts in securities, expressly conditional on the Exchange complying with all observations in Chapter 7 of the inspection report and any additional conditions that may be prescribed or imposed.

Supersession of council management extended; administrator continues pending completion of elections and demutualisation processes.
The supersession of the Council of Management of the Bhubaneswar Stock Exchange is extended for six months from January 3, 2004 to allow continued remedial action, completion of elections and demutualisation; the extension is made under the Securities Contracts (Regulation) Act and related provisions, and Shri Jai Prakash Verma (Retd.) will continue as Administrator exercising all powers and duties of the Council during the extended period.