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Press Release
April 26, 1999
Ref.No. PR101/99
PAYMENT OF FEE BY FOREIGN INSTITUTIONAL INVESTORS

FITTC Department

The existing provisions of Securities and Exchange Board of India (Foreign Institutional Investors) Regulations 1995 (Regulations) require Foreign Institutional Investors (FII) to pay the registration fee, which is denominated in US Dollars, by means of a draft drawn on Mumbai. This requirement was creating a problem for FIIs as the US $ drafts are normally payable in USA only. SEBI had received numerous complaints from FIIs regarding the above. In pursuance to the requests received from the FIIs, the Regulations have been amended on April 16, 1999 to provide for payment of fees by means of a draft payable at USA also. The registration fees for FIIs and Sub accounts can now be paid by means of a bank draft payable at New York, USA.

The Regulations have also been amended so as to permit FIIs to sell the securities held by them to the issuer company in response to an offer for buyback of securities made in accordance with Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998.