July 4, 2002

All Stock Exchanges, Depositories and Custodians

Dear Sir,


In order to facilitate the two way fungibility of ADRs / GDRs, RBI had notified the amendments to Foreign Exchange Management Act, 1999 in March 2001 and had issued operating guidelines on February 13, 2002.

In order to ensure easy tracking of the underlying shares released on the conversion of the “depository receipts”, it has been decided that all such shares shall mandatorily be credited to a separate Depository Receipts (DRs) account of the respective investor.

The depositories shall ensure to provide the following information to the domestic custodians holding the underlying shares on a regular basis:

1. Total number of shares at the beginning of the month,

2.Number of shares credited during the month,

3. Number of shares transferred out of the account (debited) during the month,

4.Balance at the end of the month.

Depositories should also inform the beneficiary account holders to transfer their current holding of DR converted shares into the separate DRs account by July 15, 2002.

Yours faithfully,
G. S. Reddy

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