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.
This clarificatory circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 16A of the SEBI (Central Database of Market Participants) Regulations, 2003 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
The benefits of deemed exports are to be given with reference to the benefits available on the date of supply irrespective of the date of contract for such supplies subject to fulfillment of all the parameters of Policy and Handbook and submission of application along with the prescribed documents within the time limit.
Vide Sl.No.2(II)(e)(ii) of the Import Licensing Notes to Chapter-87 of the ITC(HS) Classification, import of new vehicles for R & D purpose by vehicle manufacturers is exempted from all conditions laid down under Sl.No.(2)(II) of the said Licensing Notes. It is, hereby, clarified that in addition to these exemptions, import of new vehicles for R & D purpose also do not require to fulfill the condition of Right Hand Steering and controls. The importer will ensure that these vehicles are kept off the road and not registered under the Central Motor Vehicle Rules(CMVR), 1989.
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.
SEBI has received a number of representations from stock exchanges, stock brokers and sub brokers, requesting for extension of the above deadline on account of significant software changes required, system constraints and other administrative reasons.
Based on consultations with Drugs Controller General of India and the Narcotics Control Division of the Department of Revenue, it has been decided to exempt Government Opium and Alkaloid Works (GOAW) Neemuch & Ghazipur and the Chief Controller of Factories (CCF) from the requirement of registration under the Drugs and Cosmetics Act, 1940 for import of Narcotics Drugs and Psychotropic substances.
It is reiterated that STP is mandatory for all institutional trades. However some institutions who directly settle their trades with the brokers and do not use custodians in the settlement process have raised questions on the mandatory applicability of STP for their trades. It is clarified that an institutional trade for the purpose of STP shall mean a trade which is settled through a custodian.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
The renewal deadline for the Status Holder Certificate has been extended to November 30, 2004, with benefits available until December 31, 2004.
