FII & Custodian Division

Investment Management Department

Email: chanda@sebi.gov.in

Website: www.sebi.gov.in

Fax No. 91 22 22870095

Circular No. IMD/FII/17/2004

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November 29, 2004

To

All Foreign Institutional Investors, and Custodians of Securities

Dear Sir / Madam,

Sub: ECB Limit

 Please refer to our Circular No. IMD/FII/ 16 /2004 dated November 2, 2004, whereby, it was informed that the cumulative debt investment limit for the FIIs/Sub-Accounts was increased from US $1 billion to US $1.75 billion.

It has now been clarified by the Ministry of Finance, Government of India that the cap of US $1.75 billion will be applicable to FIIs investment in dated Government Securities and T-bills only, both under 100% debt route and general 70:30 route. Thus, investment in securities other than dated Government Securities and T-Bills, i.e. Corporate Debt, would not be reckoned within the sub ceiling of US $1.75 billion. Therefore, investments by the FIIs/Sub Accounts through 100% debt route in dated Government securities and T-Bills only will be reckoned for the purpose of monitoring of individual limits allocated to them.

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.

Yours faithfully,

D. Chanda
Chief General Manager

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