Division of Foreign Institutional Investors &
All Foreign Institutional
through their designated Custodians
Sub:- Lending of
securities bought in the Indian Market.
SEBI has reviewed the data
submitted by the foreign institutional investors in pursuance of our circular
no.32, dated October 16, 2008. SEBI disapproves of the
activity of the foreign institutional investors lending shares abroad. The
facility of lending and borrowing has been made available on Indian Exchanges. SEBI
is reworking the existing stock exchange offered securities lending and
borrowing mechanism, to make suitable changes.
The custodians are requested
to communicate to their FII constituents the disapproval
of SEBI as stated above.
This circular is available
on our website http://www.sebi.gov.in.