Participation by OCBs in the limited two way fungibility of ADRs/GDRs - SEBI - SMD/Policy/Cir- 24/2002

Circulars General Manager Secondary Market Department e-mail : [email protected] SMD/Policy/Cir- 24/2002 September 23, 2002 To Executive Directors/ Managing Directors All the Stock Exchanges Dear Sir/Madam, Sub:- Participation by OCBs in the limited two way fungibility of ADRs/GDRs Please refer to the Operative Guidelines for the two way fungibility under the issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993 issued by the RBI vide its circular no. 21 (DIR Series) dated February 13, 2002. In this regard it has been clarified by the RBI that the participation of the OCBs in the above mentioned scheme is being considered by the Government and that it has been decided that the two way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made. The letter of the RBI communicating the above is enclosed. You are advised to bring the contents of the letter of the RBI dated August 26, 2002 to the notice of your members. Yours faithfully P K Bindlish Encl:- As above RESERVE BANK OF INDIA EXCHANGE CONTROL DEPARTMENT CENTRAL OFFICE CENTRAL OFFICE BUILDING MUMBAI 400 001 Ref No. CO.FID(I)1118/10.1.02.05.01/2002-03 26th Aug 2002 Shri Piyoosh Gupta General Manager, FII Division Securities Exchange Board of India Mittal Court, B-Wing 224 Nariman Point Mumbai 400 021 Dear Sir Participation by OCBs in the Two Way Fungibility of ADRs/GDRs Please refer to your letter No. ITTC/FII/14671/02 dated 2nd August, 2002 on the captioned subject. The matter has been considered by the Government and it has been decided that the two way fungibility scheme can be kept on hold for OCBs for the time being till a full review is made. Hence, the scheme can be operated only for foreign investors other than OCBs. Accordingly you are requested to clarify the position to the participants concerned. Yours faithfully, (M.R. Rangachari) Dy. General Manager