Para 4 - Investments and disinvestments - European Economic Community International Institutional Partners (ECIIP) Scheme, 1993

Investments and disinvestments. 4. (1) The investments made by the European Economic Community under the ECIIP Scheme would be counted as domestic investments, and not foreign investments, for the purpose of the Statement on Industrial Policy, dated 24th July, 1991. Investments under the ECIIP Scheme would not be counted as promoters' quota for the purpose of Securities and Exchange Board of India (SEBI) guidelines. In all other sense also, investments of the European Economic Community under the ECIIP Scheme would be treated at par with the investments of the partner institutions. (2) All the investments would be made by EEC through ECIIP approved partner institutions who would hold the investment instruments on behalf of EEC. EEC would be able to disinvest also through the ECIIP partner institutions, in accordance with the disinvestment guidelines issued by the Reserve Bank of India on September 15, 1992, as modified from time to time. Disinvestment when made would be made in suitable lots by these partner institutions, so as to have minimum disturbance of dislocation of the stock exchange prices of the scrips unloaded. EEC has indicated to the Government of India that disinvestment proceeds, and funds realised therefrom, would also be reinvested as investible funds of EEC for projects approved under this Scheme. (3) This equity holding by ECIIP partner institutions on behalf of EEC out of ECIIP funds would be in addition to any equity which may be held by these institutions out of their own funds, or equity of any foreign investors hailing from European countries.