THE GAZETTE OF INDIA

EXTRAORDINARY

PART –III– SECTION 4

PUBLISHED BY AUTHORITY

NEW DELHI, MONDAY, DECEMBER 31, 2007

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the  31st December, 2007

SECURITIES AND EXCHANGE BOARD OF INDIA

(FOREIGN INSTITUTIONAL INVESTORS)

(SECOND AMENDMENT) REGULATIONS, 2007

F. No. 11/LC/GM/2007/31/12/2007. -In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, namely :-

These Regulations may be called the Securities and Exchange Board of India (Foreign Institutional Investors) (Second Amendment) Regulations, 2007.
They shall come into force on such date as the Board may specify by notification in the Official Gazette.
In the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995 –
(i) in regulation 15, –

(a) in sub-regulation (3), for clause (a) and the proviso thereto, the following shall be substituted, namely:-

“(a) a foreign institutional investor or sub-account shall transact in the Indian securities market only on the basis of taking and giving delivery of securities purchased or sold:

Provided that nothing contained in this clause shall apply to any transactions in derivatives on a recognised stock exchange:

Provided further that a foreign institutional investor or sub-account may enter into short selling transactions only in accordance with the framework specified by the Board in this regard;”

(b)for sub-regulation (8), the following sub-regulation shall be substituted, namely:-

“(8) A foreign institutional investor or sub-account may lend or borrow securities in accordance with the framework specified by the Board in this regard.”

USHA NARAYANAN

EXECUTIVE DIRECTOR

[ADVT III/IV/69-ZB/2007/Exty.]

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