Securities And Exchange Board Of India - Subsection
Section 15(3) in Securities And Exchange Board Of India (Foreign Institutional Investors) Regulations, 1995
(3)In respect of investments in the secondary market, the following additional conditions shall apply:-(a)[ a foreign institutional investor or sub-account shall transact in the Indian securities market only on the basis of taking and giving delivery of securities purchased or sold: [Substituted by Not. F.No. 1/4C/GM/2007/31/12/2007]Provided that nothing contained in this clause shall apply to any transactions in derivatives on a recognised stock exchange:Provided further that a foreign institutional investor or sub-account may enter into short selling transactions only in accordance with the framework specified by the Board in this regard;](b)no transaction on the stock exchange shall be carried forward; and(c)the transaction of business in securities shall be only through stock brokers who has been granted a certificate by the Board under sub section (1) of section 12 of the securities and Exchange Board of India Act,1992:[Provided that transactions in government securities including treasury bills shall be carried out in a manner specified by the Reserve Bank of India]. [Inserted by S.O. 495(E), dated 10.7.1997][Provided further that nothing contained in clause (c) shall apply to sale of securities by a Foreign Institutional Investor in response to a letter of offer sent by an acquirer in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997] [Inserted by S.O. 545(E), dated 30.6.1998] [or to sale of securities by a Foreign Institutional Investor in response to an offer made by any promoter or acquirer in accordance with the Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003] [Inserted by S.O. LAD/DOP/1446/2007, dated 30.12.2003](d)[ a Foreign Institutional Investor or a sub-account, shall, subject to such instructions as may be issued by the Board, deliver or cause to be delivered only securities in dematerialised form for settlement of its transactions undertaken on a recognised stock exchange, except in cases where the issuer of such securities has established connectivity with all depositaries registered with the Board under Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996.] [Substituted by No. SEBI/LAD/DOP/1446/2007, dated 8.1.2007][Provided further that in case of an offer by a company to buy-back its Securities the Foreign Institutional Investor, may sell the securities held by it to such company, in accordance with Securities and Exchange Board of India (Buy-back of Securities) Regulation, 1998] [Inserted by S.O. 263(E), dated 16.4.1999] [or to sale of Securities by a Foreign Institutional Investor in response to an office made by any promotor or acquirer in accordance with the Securities and Exchange of India (Delisting of Securities) Guidelines, 2003] [Inserted by S.O. 263(E), dated 16.4.1999][Provided further that nothing contained in Clause (c) shall apply to disinvestment of securities by the Foreign Institutional Investors in response to an offer by Indian Companies in accordance with the Operative Guidelines for Disinvestment of Shares by Indian Companies in the overseas market through issue of American Depository Receipts (ADR) or Global Depository Receipts (GDR) as notified by the Government of India vide notification No. 15/23/99-NRI, dated 29.7.2002 and directions issued by Reserve Bank of India from time to time under Section 10(4) and Section 11(1) of the foreign Exchange Management Act, 1999 (42 of 1999)] [Inserted by S.O. 548(E), dated 14.5.2003][Provided further that nothing contained in Clause (c) shall apply to any bid for, or acquistion of, securities by a Foreign Institutional Investor in response to an offer for disinvestment of shares made by the Central Government or any State Governmeny.] [Inserted by F.No. SEBI/LAD/DOP/3349/004, dated 30.12.2003][Provided further that nothing contained in Clause (c) shall apply to purchase or sale of security receipts by a foreign institutional investor.] [Inserted by S.O. 948(E), dated 6.6.2006]
