Clarifications regarding investment by Foreign Institutional Investors

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....rities Dear Sir/Madam, Sub : Clarifications regarding investment by Foreign Institutional Investors Some FIIs/ sub accounts which are not desirous of renewing registration but are holding certain unsaleable securities / securities of nominal value have approached SEBI seeking permission to hold such securities after the expiry of registration. This may happen due to reasons beyond control....

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....to SEBI is explained in this circular. A. Permitting disinvestment after expiry of registration The procedure for seeking permission for disinvestment by FIIs after expiry of registration is given below: 1. At the time of expiry of registration, the FII desiring permission for disinvestment for itself or its sub account/s shall make a request to SEBI along with details of its holdings as ....

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....t of corporate benefits and application for rights issue in respect of existing securities would be permitted. Ina case any fresh purchase transactions are undertaken, the FII would be bound to seek fresh  registration besides being liable for penal action for making investments without holding valid registration. 4. FIIs and their custodians shall be responsible for reporting these trades....

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....ular is also available at the web page 'Foreign intuitional Investors' on our web site www.sebi.gov.in. The custodians are requested to bring the contents of this circular to the notice of their FII clients. Yours faithfully   P. Gupta Division Chief   Encl.: Annexure -A LIST OF HOLDINGS OF FII/ SUB ACCOUNT Name of the FII: Registration number: Date of expir....