Issuance of Offshore Derivative Instruments by Registered Foreign Institutional Investors

IMD DEPARTMENT

EMAIL: chanda@sebi.gov.in

WEB-SITE:www.sebi.gov.in

FAX NO: 91 22 22829520

January 26 , 2004

To

All Foreign Institutional Investors and

Custodians of Securities

Dear Sir / Madam,

Sub: Issuance of Offshore Derivative Instruments by Registered Foreign Institutional Investors (FII).

Please refer to our Circular No. IMD/CUST/8/2003 dated August 08, 2003 regarding the captioned subject. Subsequent to the aforesaid circular, on a review and in the interests of greater efficacy of the market, amendment is being made to the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995. A copy of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations 2004, which has been sent for notification in the Official Gazette, is enclosed.

A copy of this circular is available at the web page "Foreign Institutional Investors" on our website www.sebi.gov.in  . The custodians are requested to bring the contents of this circular to the notice of all concerned.

Yours faithfully,

D. Chanda

Chief General Manager

                                                                                                                                                                           Circular No. IMD/CUST/02 /2004