Amendments in Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt- Mechanism) Scheme, 1993 - GSR 687(E) - Foreign Exchange Management

Notification Dated 18-9-2001 GSR 687(E): Central Government hereby amend the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt-Mechanism) Scheme, 1993 , namely:- 1. This Scheme may be called the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt-Mechanism) (Amendment) Scheme, 2001. 2. The Scheme shall be deemed to have come into force with effect from the 15th September 2000. 3. In the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt-Mechanism) Scheme, 1993 ; After para-3.B, the following sub-para shall be inserted, namely : 3.C Indian Companies registered in India and engaged in the following sectors/areas, where 80% of turnover is from these sectors/areas of the operation/business of the company in the three previous financial years, are eligible to offer Global Depository Receipts against the issue of ordinary shares under the Scheme to their non-resident/resident permanent employees (including Indian and overseas working directors) and also of their subsidiary companies, incorporated in India or abroad, subject to the eligibility conditions and operational guidelines/conditionalities announced from time to time by the Government : (i) Information Technology (as defined in the recommendation No. 19(a) and (b) of Gazette Notification dated 25-7-1999 issued by the Planning Commission) Entertainment Software. (ii) Pharmaceuticals. (iii) Biotechnology. (iv) Any other activities within the knowledge based sector as notified by the Government from time to time. These norms would also be available for multi-product diversified companies which do not conform to the criteria of 80% turnover as mentioned above but having an average annual export earnings of Rs. 100 crores from the sectors mentioned above in the three previous financial years.