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SECURITIES AND EXCHANGE BOARD OF INDIA

General Manager
Secondary Market Department
e-mail : pkb@sebi.gov.in

SMD/Policy/Cir- 24/2002
September 23,2002

To
Executive Directors/ Managing Directors All the Stock Exchanges
Dear Sir/Madam,

Sub:- Participation by OCBs in the limited two way fungibility of ADRs/GDRs

Please refer to the Operative Guidelines for the two way fungibility under the “issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993” issued by the RBI vide its circular no. 21 (DIR Series) dated February 13, 2002.

In this regard it has been clarified by the RBI that the participation of the OCBs in the above mentioned scheme is being considered by the Government and that it has been decided that the two way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made. The letter of the RBI communicating the above is enclosed.

You are advised to bring the contents of the letter of the RBI dated August 26, 2002 to the notice of your members.

Yours faithfully

P K Bindlish

Encl:- As above

RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
CENTRAL OFFICE BUILDING
MUMBAI 400 001

Ref No. CO.FID(I)1118/10.1.02.05.01/2002-03

26th Aug 2002

Shri Piyoosh Gupta
General Manager, FII Division
Securities & Exchange Board of India
Mittal Court, B-Wing
224 Nariman Point
Mumbai 400 021

Dear Sir

Participation by OCBs in the Two Way Fungibility of ADRs/GDRs

Please refer to your letter No. ITTC/FII/14671/02 dated 2nd August, 2002 on the captioned subject. The matter has been considered by the Government and it has been decided that the two way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made. Hence, the scheme can be operated only for foreign investors other than OCBs.

Accordingly you are requested to clarify the position to the participants concerned.

Yours faithfully,
(M.R. Rangachari)
Dy. General Manager

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