To
All Foreign Institutional Investors and Custodians of Securities
Dear Sir / Madam,
Sub: Reporting of write off of securities held by Foreign Institutional Investors and Sub-Accounts.
It has been brought to our notice that some of the Foreign Institutional Investors (FIIs) have been writing off securities held by them or their Sub-Accounts (SAs) due to various reasons. It has been decided that the following procedure for writing off securities and reporting to SEBI may be adopted:
Custodians should note that they are acting as trustees and shall not derive any extra benefit from the disinvestment of securities other than their charges/fees. 5. Corporate benefits: In case of receipt of corporate benefits in the form of securities arising out of shares written off, the same shall be reported to SEBI in the normal manner. Similarly, corporate benefits received in the form of cash viz. dividend shall be credited to the Investors Protection Fund of the regional stock exchange not later than 7 days from the date of receipt of the same.
7. Reporting Procedure:
Further, securities already written off by the FIIs/SAs should be reported vide a single report both in hard and soft copy by June 01, 2002.
These instructions are issued under regulation 20 of SEBI (Foreign Institutional Investors) Regulations, 1995 and shall come in force with effect from June 01, 2002.
A copy of the 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 their FII clients.
Yours faithfully,
P. Gupta General Manager FII DIVISION FITTC DEPARTMENT EMAIL: pgupta@sebi.gov.in WEB-SITE:www.sebi.gov.in FAX NO: 91 22 2845776