v.

Foreign Institutional Investments

The SEBI continued to encourage FIIs to invest in India and took measures to improve the regulatory framework for FIIs to facilitate FII investments into the securities market. The following changes have been made to the FII regulations during the year 1998-99:

Stock lending permitted The stock lending scheme was introduced by SEBI in 1996. The FIIs, which are active participants in the Indian securities market, have been allowed to lend stocks through an approved intermediary. However, presently the FIIs are not permitted to borrow securities which could result into covered short sales by the FIIs.

Investments in T-bills allowed While announcing the policy measures relating to the Government securities market in the credit policy announcement on April 29, 1998, the RBI allowed FIIs to invest in treasury bills within the overall approved debt ceiling. A previous amendment in 1997 had permitted FIIs to invest in proprietary funds and also to invest in dated government securities.

Investments in unlisted securities permitted The Finance Minister in his Budget Speech for 1998-99 announced that foreign institutional investors investing through the 100 per cent debt route would be permitted to invest in unlisted securities. Amendments to this effect have been approved and notified by the SEBI.

FIIs participation in open offers directly The SEBI (Foreign Institutional Investors) Regulations, 1995 require FIIs to enter into secondary market transactions only through stock brokers registered with SEBI. To facilitate the participation of FIIs in open offers, the FIIs have now been permitted to tender their securities directly in response to an open offer made in terms of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

Investments in derivatives permitted As FIIs are potential participants in the derivatives markets; it was felt that the presence of FIIs and domestic institutions would be critical to the success of the market. It was, therefore, decided to permit FIIs to buy and sell derivative contracts traded on a stock exchange.

Simplification of application procedure In terms of regulations 12 and 13 of the SEBI (Foreign Institutional Investors) Regulations, 1995, FIIs may invest on behalf of sub-accounts which are registered with SEBI. When considering an application for registration of sub-accounts, the Regulations required submission of detailed information for registration. Under this procedure, considerable time was sometimes taken in determining whether the applicant was "broad based" as required by the Regulations. To simplify the registration process for sub-accounts it has been decided that the determination of fulfillment of broad base criteria be done by the foreign institutional investor itself and a declaration to this effect be submitted to SEBI. The Regulations have been amended to incorporate a simplified format for registration of sub account under which registration is now granted within three days of receipt of application.

Web Page for the FIIs The foreign institutional investors operate through their offices located abroad. To facilitate better exchange of information with the FIIs as well to provide information on the policy developments, a separate page on FIIs has been created on the official web site of SEBI. The page contains the FII regulations, the applications forms, details of the registration procedures and list of the FIIs registered with the SEBI. a lot of details are also provided under the head frequently asked questions. The FIIs or their representatives can also contact the FII division personnel in SEBI through this page.

http://www.jagranjosh.com/current-affairs/sebi-raised-investment-limit-for-foreign-institutionalinvestors-in-corporate-bonds-to-40-billion-1301661509-1

SEBI raised Investment Limit for Foreign Institutional Investors in Corporate Bonds to $40 billion Suggested Readings: April 2011 Current Affairs, Topics for Bank PO | Clerk Exam , Economy,2011 Current Affairs Published on: 01-APR-2011 0

Market regulator SEBI raised the overall investment limit for foreign institutional investors in corporate bonds to $40 billion on 31 March 2011.

SEBI modified the policy where FIIs and the sub accounts registered with SEBI were permitted to invest in corporate bonds only up to $20 billion. SEBIs decision is rooted Pranab Mukherjees 2011-12 Budget Speech where he pledged to to boost the flow of funds to the infrastructure sector.

FII limit for investment in corporate bonds with a residual maturity of over five years and issued by companies in the infrastructure sector was increased by an additional $20 billion to a total limit to $25 billion.

SEBI specified that since most of the infrastructure companies are organised in the form of special purpose vehicles or SPVs, FIIs would also be permitted to invest in unlisted bonds. The investment in bonds, both listed and unlisted, should have a minimum lock-in period of three years.

FIIs will most likely be allowed to trade amongst themselves during the lockin period. To facilitate such trading by FIIs, exchanges will provide for a special trading window on the same lines of equities in companies where the overall FII investment reaches the maximum limit.

India needs over a trillion dollar of investment in infrastructure in the Twelfth Five Year Plan beginning 2012, about half of which is expected to come from the private sector.

Several high powered committee had previously recommended doing away with the ceiling altogether to develop India's debt market, complete with vibrant markets in credit, currency and interest rate derivatives. Committees like the Deepak Parekh Committee on infrastructure financing and RH Patil Committee on deepening the bond market had also suggested easing of the foreign flow in debt market. http://www.caparivaar.com/policy-relating-fii-investments-government-securities-and-long-terminfrastructure-bonds-rationalize

Policy Relating to FII Investments in Government Securities and Long-Term Infrastructure Bonds Rationalized;

New Scheme for ECB Borrowings Introduced The policies relating to FII Investments in Government Securities, Corporate Bonds, Long-Term Infra Bonds and ECB of Indian Companies and QFI have been reviewed and the following changes have been made therein. Government Securities: a. Currently FIIs are allowed to invest US$5 billion in Government Securities that have residual maturity of over five years. It has now been modified to reduce the residual maturity to three years. b. An additional window of US$5 billion would be available for FII investment in Government Securities subject to residual maturity of three years. c. The above modifications would now make available to FIIs a total limit of US$10 billion subject to residual maturity of three years. d. With the above changes, the total FII limit would stand at US$20 billion.

e. Further, in order to broad base the non-resident investor base for Government Securities, it has also been decided to allow long term investors like Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, insurance funds, pension funds and foreign Central Banks to be registered with SEBI to also invest in Government securities within this enhanced limit of USD 20 billion.

A new scheme under ECB:

HLC-ECB has decided to add a new scheme for External Commercial Borrowings (ECB borrowings). Indian companies can now avail of ECBs for repayment of Rupeeloan(s) availed of from the domestic banking system and/or for fresh Rupee capital expenditure, under the approval route, subject to satisfying the following conditions:

i. of such ECBs;

Only companies in the manufacturing and infrastructure sector will be eligible to avail

ii. Such companies shall be a consistent foreign exchange earner during the past three financial years; iii. and iv. Such ECBs shall only be utilized for repayment of the Rupee loan(s) availed of for `capital expenditure` incurred earlier and are still outstanding in the books of the domestic banking system and/or for fresh Rupee capital expenditure. v. The overall ceiling for such ECBs as stated at para-B (a) above, shall be USD10 (ten) billion. The maximum permissible ECB that can be availed of by an individual company will be limited to 50 per cent of the average annual export earnings realised during the past three financial years. The ECBs will be allowed to companies based on the foreign exchange earnings and its ability to service the ECB. The companies should draw down the entire facility within a month after taking the Loan Registration Number (LRN) from the Reserve Bank. Such companies are not in the default list/caution list of the Reserve Bank of India;

Rationalization in the Scheme of FIIs investment in Long-term Infrastructure Bonds

At present, FII investments in long term infra-bonds have a ceiling of US$25 billion. Out of the US$25 billion, the following are the sub- categorization:

i.

US$10 billion investment in IDF.

ii. US$5 billion for FII investments in long term infra bonds with a residual maturity of one year and subject to a lock-in of similar period.

iii. US$3 billion available for QFI investments in mutual fund debt scheme that also invest in schemes of infrastructure companies. iv. The remaining of the total ceiling (US$7 billion) is available in FII investments in long term infra bonds that have residual maturity of three years and is also subject to a lock-in period of three years.

The above scheme is being modified as under:

i. Of the US$7 billion available in FII investments which are currently subject to a three year lock-in and three years residual maturity would now have one year lock-in and at least 15 months residual maturity at the time of first purchase by an FII.

ii. The residual maturity of the bonds under the US$5 billion ceiling would now be at least 15 months at the time of first purchase and the lock-in period would continue to be one year.

iii. The lock-in for IDF investment would be reduced to one year from the present three years subject to the condition that the residual maturity at the time of first purchase is at least 15 months.

iv. As regards the USD 3 billion limit for QFI investment in MF debt schemes, it has been decided that QFIs can invest in those MF debt schemes that hold at least 25% of their assets (either in debt or equity or in both) in the infrastructure sector.

The withholding tax would be liberalized as announced in the 2012-13 Budget.

Department of Revenue (DoR), RBI and SEBI will issue necessary circulars to give effect to the above changes/policies.

http://articles.economictimes.indiatimes.com/2012-08-08/news/33100706_1_indian-equities-fiiinflows-indian-stocks

Indian equities attract maximum FII money in Asia since Jan'12 MUMBAI: Indian equities have attracted more foreign institutional flows than any other Asian market so far in 2012 as portfolio investments resumed in July on renewed hopes of policy action by the government to revive theeconomic growth. Foreign funds have poured close to $11 billion (Rs 55,000 crore) into Indian equities so far this year with the second highest being South Korea, which clocked flows worth $6.3 billion (Rs 31,500 crore) since January.

A majority of the inflows took place between January and March and then in July. There were various reasons for the intermittent flows. While foreign funds flooded money into Indian stocks in the JanuaryMarch period as fund managers felt the rupee was cheap compared to the dollar, the flows in July were largely driven by the optimism surrounding the change in guard at the finance ministry. Kunal Ghosh, the US-based emerging markets portfolio manager at Allianz Global Markets said July inflows were also in the expectation of policy rate cuts by the Reserve Bank of India. "The first quarter [inflow] was because of the equity market risk-on trade among foreign investors, and especially since India had significantly underperformed in 2011," he said. Almost Rs 47,500 crore flowed into India in January-March and July which is seven times the flows in the first half of 2011. Brokers said the prospect of P Chidambaram, considered a more market-friendly finance minister than his predecessor Pranab Mukherjee, taking charge prompted foreign institutions, which had not invested in January-March, to put money into Indian stocks. A majority of the flows into India this year have been by exchange-traded funds and India-dedicated funds, brokers said. "We have seen a reasonable amount of inflows via exchange-traded funds or ETFs noticed in the first quarter with the pace picking up recently as well," said Avinash Gupta-MD and head of global market sales, Bank of America -Merrill Lynch. A sector-wide break-up of data further reveals that over 26% of the inflow was into the finance sector; including banks the share of inflow is 32%. This was higher than the defensive bet fast moving consumer goods (17%) and information technology (15%). "There is a lot of hope on the policy front in India which is attracting the attention of foreign investors," said UR Bhat, MD, Dalton Capital Advisors. "In addition there is talk of monetary easing both in the US and Europe and this has traditionally resulted in money flowing into emerging markets like India. In anticipation of this monetary easing and the potential runup in markets like India foreign investors are probably taking positions in Indian stocks," he said.

However, a large part of these data hides one-off deals, institutional salespersons said. "A number of block trades were executed during the year, where the sellers held their positions under FDI, whilst some of the buyers were FIIs - this has skewed the numbers a bit to show larger FII inflows," said Gupta. While the absolute inflow numbers were the highest for India, when expressed as a share of market capitalisation, Philippines had the highest inflow so far in 2012, said Allianz's Ghosh. "We measure the

flows as a fraction of market capitalisation of the country. On that basis, in the last 12 months, the highest flow was for Philippines and India was in line with Indonesia," he said.
Investment in Indian Companies by FIIs/NRIs/PIOs Regulations Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per centfor NRIs/PIOs. The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India. The ceiling of 24 per cent for FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect. And the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect. The ceiling for FIIs is independent of the ceiling of 10/24 per cent for NRIs/PIOs. The equity shares and convertible debentures of the companies within the prescribed ceilings are available for purchase under PIS subject to: - the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis, being within an overall ceiling limit of (a) 24 per cent of the company's total paid up equity capital and (b) 24 per cent of the total paid up value of each series of convertible debenture; and - the investment made on repatriation basis by any single NRI/PIO in the equity shares and convertible debentures not exceeding five per cent of the paid up equity capital of the company or five per cent of the total paid up value of each series of convertible debentures issued by the company. Monitoring Foreign Investments The Reserve Bank of India monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. For effective monitoring of foreign investment ceiling limits, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings. The cut-off point, for instance, is fixed at 8 per cent for companies in which NRIs/ PIOs can invest up to 10 per cent of the company's paid up capital. The cut-off limit for companies with 24 per cent ceiling is 22 per cent and for companies with 30 per cent ceiling, is 28 per cent and so on. Similarly, the cut-off limit for public sector banks (including State Bank of India) is 18 per cent. Once the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs reach the cut-off point, which is 2% below the overall limit, the Reserve Bank cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FIIs/NRIs/PIOs without prior approval of the Reserve Bank. The link offices are then required to intimate the Reserve Bank about the total number and value of equity

shares/convertible debentures of the company they propose to buy on behalf of FIIs/NRIs/PIOs. On receipt of such proposals, the Reserve Bank gives clearances on a firstcome-first served basis till such investments in companies reach 10 / 24 / 30 / 40/ 49 per cent limit or the sectoral caps/statutory ceilings as applicable. On reaching the aggregate ceiling limit, the Reserve Bank advises all designated bank branches tostop purchases on behalf of their FIIs/NRIs/PIOs clients. The Reserve Bank also informs the general public about the `caution and the `stop purchase in these companies through a press release. The current list of companies allowed to attract investments from FIIs/NRIs/PIOs with their respective ceilings is: List of companies List of companies which have raised the ceiling from 10% in respect of NRIs investments under PIS (w.e.f. November 29, 2010) Upto 24% 1 2 3 4 5 6 7 8 9 Alembic Chemical Works Co. Ltd. Amar Investments Ltd., Calcutta. Anglo- India Jute Mills Co. Ltd. Arvind Mills, Ahmedabad. Ashima Syntex Ltd, Ahmedabad. Ashoka Viniyoga Ltd. Bharat Nidhi Ltd. BLB Shares & Financial Services Ltd BPL Ltd.

10 Burr Brown (India) Ltd 11 Camac Commercial Company Ltd. 12 Ceenik Exports (India) Ltd. 13 Cifco Finance Ltd., Mumbai. 14 Classic Financial Services & Enterprises Ltd, Calcutta. 15 CPPL Ltd, (Reliance Ind. Infrastructure Ltd) Mumbai. 16 Crest Communication Ltd. 17 CRISIL 18 DCM Ltd. 19 DCM Shriram Consolidated Ltd. 20 Dharani Sugars & Chemicals Ltd 21 Dolphin Offshore Enterprises ( I ) Ltd. 22 Emco Ltd. 23 Essar Oil Ltd. 24 Essar Shipping Ltd., Blore 25 Essar Steel Ltd. 26 Eveready Industries India Ltd.

27 Fabworth (I) Ltd. 28 Federal Bank Ltd. 29 Ferro Alloys Corporation Ltd., Tumsar. 30 Gammon India Ltd 31 Grasim Industries Ltd. 32 GTL Ltd.(formerly Global Tele-Systems Ltd.) 33 GTL Infrastructure Ltd 34 Hamco Mining & Smelting Ltd. 35 HCL Infosystems Ltd. 36 HEG Ltd 37 Hindustan Development Corp. Ltd, Calcutta. 38 Hindustan Nitroproducts (Gujarat) Ltd. 39 Hindustan Transmission Products Ltd., Mumbai 40 HMG Industries Ltd., Mumbai. 41 Housing Development and Infrastructure Limited 42 Indiabulls Real Estate Ltd. 43 India bulls Securities Ltd. 44 Indiabulls Financial Services Ltd 45 Indiabulls Power Limited (formerly Sophia Power Company Limited) 46 Igarashi Motors India Ltd 47 IVP Ltd 48 Jagatjit Industries Ltd, 49 Jai Parabolic Springs Ltd. 50 Jaysynth Dyechem Ltd. 51 Jindal Strips Ltd. 52 Jindal Iron & Steel Co. Ltd. 53 Jindal Saw Limited (formerly Saw Pipes Limited) 54 JJ Spectrum Silk Ltd. 55 Kartjikeya Paper & Boards Ltd. 56 K Sera Sera Productions Ltd 57 Lakhani India Ltd. 58 M.P. Agro Fertilisers Ltd., Bhopal. 59 Macleod Russel (I) Ltd. 60 Matsushita Television and Audio India Ltd. 61 Max India Ltd 62 Mazda Enterprises Ltd., Mumbai. 63 Media Video Ltd. 64 Monnet Ispat & Energy Limited 65 Multimetals Ltd., Mumbai 66 Neha International Limited.

67 National Steel Industries Ltd. 68 Nicholas Laboratories India Ltd., Mumbai. 69 Networth Stock Broking Limited 70 Nava Bharat Ventures Limited 71 O.P. Electronics Ltd., Mumbai. 72 Oriental Housing Development Finance Corp. Ltd. 73 Pabacea Biotec Ltd. 74 Padmini Technologies Ltd. 75 Pearl Polymers Ltd., New Delhi. 76 Piramal Healthcare Ltd. 77 PNB Finance & Industries Ltd 78 Rajath Leasing & Finance Ltd. 79 Rajesh Exports Limited 80 Rama Petrochemicals Ltd. 81 Rama Phosphates Ltd. 82 Reliance Industries Ltd., Mumbai. 83 Rishra Investment Ltd., Calcutta 84 Rossell Industries Ltd., Calcutta. 85 Sahu Properties Ltd 86 Sanghvi Movers Ltd 87 Saurashtra Paper & Board Mills Ltd. 88 Sayaji Hotel Ltd. 89 SB & T International Ltd 90 Sharyans Resources Ltd. 91 Shanti Gears Ltd. 92 Shibir India Ltd., Calcutta 93 Shrenuj & Company Ltd. 94 Shriram Industries Enterprises Ltd., N. Delhi. 95 Silverline Industries Ltd. 96 Sonata Software Ltd. 97 SRF Ltd. 98 Sterling Lease Finance Ltd., Mumbai. 99 Sujana Metal Products Ltd 100 Svam Software Ltd. 101 Synthetics and Chemicals Ltd., Mumbai. 102 Shrenuj & Company Limited 103 The Champdany Industries Ltd., Calcutta. 104 The Dhanalakshmi Bank Limited 105 The Dharamsi Morarji Chemical Co. Ltd . 106 The Investment Trust of India Ltd.

107 The Morarjee Goculdas Spinning & Weaving Co Ltd, Mumbai. 108 Tolani Bulk Carrier Ltd. 109 Unitech Limited. 110 Uniworth International Ltd. 111 Vaibhav Gems Ltd. 112 Valecha Engineering Ltd. 113 VisualSoft Technologies Ltd. 114 Weltermann International Ltd. 115 Woolworth (India) Ltd. 116 Yes Bank Ltd. 117 Zora Pharma Ltd. 118 M/s. Redington(India) Ltd.(w.e.f. 29.11.2010) 119 M/s. Compuage Infocom Limited (w.e.f. 4.3.2011) 120 M/s. Kitex Garments Limited (w.e.f. 8.7.2011) 121 M/s Indiabulls Wholesale Services Ltd (w.e.f. 26.08.2011) 122 M/s Gitanjali Gems Ltd ( wef 16.09.2011) 123 Everonn Education Limited ( w.e.f 6.1.2012) 124 Indiabulls Infrastructure and Power Ltd ( w.e.f. 20.1.2012) Upto 17% 1 Garware Shipping Corporation Ltd.

LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 30% OF THEIR PAID UP CAPITAL UNDER PIS 1 2 3 4 5 6 7 8 9 Asian Paints (India) Ltd Capital Trust Ltd Container Corporation of India Divis Laboratories Ltd Ferro Alloys Corporation Ltd Garware Polyester Ltd GIVO Ltd (formerly KB & T Ltd) Mahindra Gesco Developers Ltd Orchid Chemicals and Pharmaceuticals Ltd

10 Penta Soft Tec(Pentafour Communications Ltd) 11 Polyplex Corporation Ltd 12 Ranbaxy Laboratories Ltd 13 Shasun Chemicals Ltd 14 Sonata Software Ltd 15 The Paper Products Ltd

16 Vikas WSP Ltd 17 Apollo Tyres Ltd.(w.e.f. June 22, 2010) LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 40% OF THEIR Paid Up Capital 1 Adlabs Films Ltd. 2 Aftek Infosys Ltd. 3 Balaji Telefilms Ltd. 4 Bharat Forge Ltd 5 Burr Brown (India )Ltd 6 Cipla Ltd. 7 Elbee Services Ltd 8 Glenmark Pharmaceuticals Ltd 9 Gujarat Ambuja Cements Ltd 10 HEG Ltd 11 Hero Honda Motors Ltd 12 Jindal Steel & Power Ltd 13 Jyoti Structures Ltd 14 Maars Software International Ltd 15 Mount Everest Mineral Water Ltd 16 Padmini Technologies Ltd. 17 Rajasthan Spinning & Weaving Mills Ltd 18 Rico Auto Industries Ltd. 19 Shanti Gears Ltd. 20 Silverline Technologies Ltd. 21 Suven Life Sciences Ltd. 22 The India Cements Ltd. 23 The Indian Hotels Company Ltd 24 Thiru Arooran Sugars Ltd. 25 UTV Software Communications Ltd 26 Visual Soft Technologies Ltd. 27 Ways India Ltd. 28 Shemaroo Entertainment Limited (w.e.f. 24.02.2012) LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 49% OF THEIR Paid Up Capital 1 2 3 4 Alok Industries Auribindo Pharma Ltd. Arvind Mills Ltd Balakrishna Industries Ltd

5 6 7 8 9

Blue Dart Express Ltd CRISIL Digital GlobalSoft Ltd. Dr. Reddys Laboratories Ltd. D. S. Kulkarni Developers Ltd.

10 Federal Bank Ltd. 11 Financial Technologies (I) Ltd 12 HDFC Bank Ltd 13 Himachal Futuristic Communications Ltd. 14 Hindustan Lever Ltd. 15 Hughes Software Ltd. 16 ICICI Bank Ltd. 17 Ind-Swift Laboratories Ltd. 18 Karnataka Bank Ltd. 19 LIC Housing Finance Ltd. 20 Marksans Pharma Ltd. 21 Mahindra & Mahindra Ltd. 22 Mastek Ltd 23 Max India Ltd 24 McDowell & Co Ltd 25 NIIT Ltd. 26 NIIT Technologies Ltd. 27 Panacea Biotec Ltd. 28 Reliance Capital Ltd. 29 Reliance Energy Ltd. 30 Reliance Industries Ltd. 31 Reliance Petroleum Ltd. 32 SB & T International Ltd. 33 Sadbhav Engineering Limited 34 S. Kumars Nationwide Ltd 35 Soffia Software Ltd 36 Strides Arcolabs Ltd 37 Sun Pharmaceutical Industries Ltd. 38 Swaraj Mazda Ltd 39 The South Indian Bank Ltd 40 The Dhanalakshmi Bank Limited 41 SPANCO Limited 42 United Breweries Ltd 43 United Phosphorus Ltd 44 UTI Bank Ltd.

45 Vimta Labs Ltd. 46 Wockhardt Ltd. 47 Yes Bank Ltd. 48 Zeefilms Ltd. 49 Welspun India Ltd (w.e.f. 10.02.2010) LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO LIMITS FIXED BY COMPANIES AS INDICATED AGAINST THEIR NAMES 1 2 3 4 5 6 7 8 9 11 Amtek Auto Ltd (74%) Advanta India Limited 49% Amtek India Ltd (74%) Ahmednagar Forgings Ltd (74%) Anant Raj Industries Ltd. (40%) ANG Auto Ltd (49%) Apollo Hospitals (74%) Aptech Ltd (74%) Arshiya International Limited (49%)

10 Ansal Properties Infrastructure Limited (49%)

Bhagwati Banquets & Resorts Ltd.

12 Bombay Rayon Fashions Ltd (26%) 13 Bajaj Auto Finance Ltd (30%) 14 Bajaj Hindusthan Limited (74%) 15 Balrampur Chini Mills Ltd (60%) 16 Birla Power Solutions Ltd. (74%) 17 Core Projects & Technologies Ltd.(74%) 18 Cranes Software International Limited (60%) 19 Crest Communication Ltd (50%) 20 CESC Ltd. (49%) 21 CREW B.O.S. Products Ltd. -(49%) 22 DCM Ltd - (49%) 23 Development Credit Bank Ltd. - (49%) 24 Dagger-Forst Tools Ltd. - (74%) 25 Emco Ltd - (49%) 26 Escorts Ltd - (49%) 27 Era Construction (India) Ltd - (40%) 28 Fedders Lloyd Corporation Limited (74%) 29 Ganesh Housing Corporation Ltd.(49%) (formerly Ganesh Housing Finance Corporation Ltd)

30 Gammon India Ltd - (49%) 31 Garware Offshore Services Ltd-(60%)

32 Godrej Consumer Products Ltd (35%) 33 Great Offshore Limited-(49%) 34 GTL Ltd. (74%) 35 GTL Infrastructure Ltd. (74%) 36 Gujarat Pipavav Port Limited (45%) (w.e.f May 29, 2012) 37 HTMT Global Solutions Ltd.-(74%) 38 Hindustan Construction Co Limited (49%) 39 Hindalco Industries Limited (40%) 40 Igarashi Motors India Ltd. - (40%) 41 Il & FS Investment Managers Ltd- 74% 42 ICSA (INDIA) Ltd. - (49%) 43 I-Flex Solutions Ltd. (60%) 44 India Nivesh Limited (49%) 45 Infrastructure Development Finance Company Limited (74%) 46 Info Edge (India) Ltd. (40%) 47 International Conveyor Limited (74%) 48 IOL Broadband Ltd. - (49%) 49 Jai Corp Ltd. -(49%) 50 Jindal Saw Limited (49%) (formerly Saw Pipes Limited ) 51 Jaisal Securities Limited (50%) 52 Jaiprakash Associates Ltd. (45%) 53 JSW Steel Limited (49%) 54 Jupiter Bioscience Ltd. - (70%) 55 Kamdhenu Ispat Ltd. (49%) 56 Karuturi Networks limited (74%) 57 KEI Industries Ltd. - (49%) 58 Kotak Mahindra Bank Ltd (33%) 59 KPIT Cummins Infosystems Limited (49%) 60 Laxmi Energy & Foods Ltd (Lakshmi Overseas Industries Ltd) (49%) 61 Lloyd Electric & Engineering Ltd (74%) 62 Logix Microsystems Ltd - (74%) 63 Micro Technologies (India) Limited (49%) 64 Maharashtra Seamless Limited (40%) 65 McDowell Holdings Ltd -(49%) 66 Mercator Lines Ltd (70%) 67 Monnet Ispat & Energy Limited (40%) 68 Moser Baer India Ltd (74%) 69 MARG Limited (40%) 70 McLeod Russel India Limited (40%) 71 Network 18 Media & Investments Limited (Formerly Network 18 Fincap Ltd) - 49% (FIIs/NRIs/PIO upto 40%)

72 Neha International Limited (49%)

73 Nagarjuna Construction Company Ltd. (74%) 74 Nava Bharat Ventures Limited (40%) 75 NITCO Tiles Ltd. (60%) 76 Northgate Technologies Ltd (74%) 77 Om Metals Infra projects Ltd.(49%) 78 Opto Circuits (India) Ltd (40%) 79 Paramount Communications Ltd (39%) 80 Patni computers Ltd (74%) 81 Pioneer Investcorp Limited (40%) 82 The Phoenix Mills Limited. (49%) 83 Pritish Nandy Communications Ltd (60%) 84 Provogue (India) Ltd. (49%) 85 Piramal Healthcare Limited (49%) 86 PTC India Ltd. - (60%) 87 Punjab Tractors Ltd. (64%) 88 PVR Ltd (50%) 89 Pyramid Saimira Theatre Ltd. (40%) 90 M/s. Prime Securities Limited (74%) 91 Parekh Aluminex limited (74%) 92 Precoated Steels Limited (49%) 93 Peninsula Land Limited (40%) 94 Parsvnath Developers Limited (40%) 95 Rajesh Exports Ltd (49%) 96 Rolta India Ltd (75%) 97 Sakthi Sugars Ltd (50%) 98 Sanghvi Movers Ltd.(49%) 99 Satnam Overseas Ltd (51%) 100 Satyam Computer Services Ltd (60%) 101 Shree Renuka Sugars Ltd. (49%) 102 Sical Logistics Ltd. (49%) 103 Sintex Indiastries Ltd. (74%) 104 Srei Infrastructure Finance Ltd (64%) 105 Subex Systems Ltd. (74%) 106 Sun Pharma Advance Research Company Ltd. (49%) 107 SSI Ltd (74%) 108 SESA GOA Limited (45%) 109 Soma Textiles & Industries Ltd. (74%) 110 Suzlon Energy Limited (49%) 111 Tata Motors Ltd.(35%) 112 Tata Tea Ltd (35%) 113 The Tata Power Company Ltd (35%) 114 The Jammu & Kashmir Bank Ltd. (40%)

115 Tanla Solutions Ltd. (49%) 116 Temptation Foods Ltd. -(74%) 117 Tourism Finance Corporation of India Ltd (49%) 118 Tulip IT Services Ltd. (40%) 119 Unichem Laboratories Ltd (39%) 120 United Spirits Limited (59%) 121 Vaibhav Gems Ltd (60%) 122 Vakrangee Softwares Ltd. (49%) 123 Venus Remedies Limited- (49%) 124 Voltas Limited (30%) 125 WELSPUN Gujarat Stahl Rohren Limited (49%) 126 Zicom Electronic Security System Ltd (74%) 127 S.E Investments Limited (74% - 28.01.2010) 128 KRBL Limited (49% w.e.f. March 15, 2010) 129 Su-raj Diamonds and Jewellery Limited (65% w.e.f. 27.10.2010 updated from earlier limit of 49% w.e.f. March 30,2010)

130 Hathway Cable & Datacom Limited (49% w.e.f.-May 21,2010) 131 Rei Agro Limited (75% w.e.f.July 7, 2010) 132 Rural Electrification Corporation Ltd (35% w.e.f.30.9.2010). 133 Cox and Kings (India) Limited (74% w.e.f.-October 5, 2010) 134 GMR Infrastructure Limited (35% w.e.f.October 22, 2010) 135 GCV Services Limited (49% w.e.f. December 23, 2010) 136 IVRCL Assets & Holdings Limited (49% w.e.f. 7.2.2011) 137 SVC Resources Ltd. (49% w.e.f. 9.2.2011) 138 Marico Limited (35% w.e.f.25.2.2011) 139 Compuage Infocom Limited (49% w.e.f. 4.3.2011) 140 Lupin Limited (33% w.e.f. 28.4.2011) 141 Tecpro Systems Limited (49% w.e.f. 6.5.2011) 142 Era Infra Engineering Limited(65% w.e.f. 12.5.2011) 143 VA Tech Wabag Limited (49% w.e.f.16.6.2011) 144 Jubilant FoodWorks Limited ( 49 % w.e.f 26.08.2011) 145 Info-Drive Software limited (49 % w.e.f. 26.08.2011) 146 Gitanjali Gems Ltd ( 50% wef 16.09.2011) 147 Mahindra & Mahindra Financial Services Ltd ( 49 % wef 03.10.2011) 148 Jain Irrigation Systems Limited ( 60% wef 17.10.2011) 149 The Karur Vysya ank Limited ( 35 % wef 17.10.2011) 150 Nava Bharat Ventures Ltd (60 % wef 18.11.2011) 151 Polaris Financial Technology Limited (49.90% wef 20.12.2011) 152 SKS Microfinance Limited (74% wef 6.1.2012) 153 Just Dial Limited (49% wef 20.1.2012) 154 Dewan Housing Finance Corporation Limited (60% wef 02.02.2012)

Kavveri Telecom Products Limited (35% wef 09-04-2012) LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO SECTORAL CAP/STATUTORY CEILING OF THEIR PAID UP CAPITAL 1 AZTEC Software and Technology Services Ltd - (100%) 2 Dynamatic Technologies Limited -(100%) 3 Educomp Solutions Limited. (100%) 4 Gateway Distriparks Ltd - (100%) 5 Geodesic Information Systems Ltd- (100%) 6 Geometric Software Solutions Ltd (100%) 7 Gujarat NRE Coke Limited -(74%) 8 HCL Infosystems Ltd. (100%) 9 Hexaware Technologies Ltd (100%) 10 Housing Development and Infrastructure Limited (100%) 11 Indiabulls Real Estate Limited (100%) 12 Indiabulls Financial Services Ltd (100%) 13 Indiabulls Securities Limited - (100%) 14 Indiabulls Power Limited (100%) (formerly Sophia Power Company Limited)

15 Infotech Enterprises Limited (100%) 16 Infosys Technologies Ltd. (100%) 17 IVRCL Infrastructures & Projects Ltd (100%) 18 India Infoline Ltd. (100%) 19 Mascon Global Ltd. (100%) 20 Mphasis BFL Ltd (100%) 21 Orbit Corporation Limited (100%) 22 Pentamedia Graphics Ltd.- (100%) 23 Pentasoft Technologies Ltd. (100%) 24 Prajay Engineers Syndicate Limited (100%) 25 Punj Lioyd Limited (100%) 26 IFCI Limited. (74%) 27 Reliance Communications Ltd (74%) 28 Sujana Metal Products Ltd - (100%) 29 Sujana Towers Limited-(100%) 30 Sujana Universal Industries Ltd - (100%) 31 Shrenuj & Company Limited- (100%) 32 Unitech Limited (100%) 33 Interworld Digital Limited (100%) 34 Shobha Developers Limited (100% - Feb 3, 2010) 35 Everonn Education Ltd. (100% w.e.f.June 4, 2010)

36 Redington (India) Limited (100% w.e.f. November 29, 2010) 37 Indiabulls Wholesale Services Ltd (100% w.e.f August 23, 2011) 38 eClerx Services Limited ( 100% wef December 20, 2011) 39 Indiabulls Infrastructure and Power Ltd (100% w.e.f Jan 20,2011) 40 41 Housing Development Finance Corporation Limited (100% w.e.f. May 24, 2012) Phoenix Mills Limited( 100% w.e.f. July 27 2012, Revised from earlier limit of 49%)

LIST OF PRINT MEDIA COMPANIES IN WHICH FDI / FII INVESTMENT IS ALLOWED 1 Jagran Prakashan -26% 2 Deccan Chronicle Holdings Ltd 24% (FIIs upto 14%) 3 IBN 18 Broadcast Ltd.-26% Companies in which overall FII ceiling has reached and no further purchases are allowed Companies falling under 24 % 1 2 3 4 Pantaloon Retail (India) Ltd. Panyam Cements and Minerals Industries Ltd. Elpro International Limited (wef 25.08.2011) Anil Modi Oil industries Ltd (wef 25.08.2011)

Companies falling under 30 % None Companies falling under 49% limit None Companies where 38% FII limit has been reached and further purchases are allowed with prior approval of RBI. None Companies where 28% FII limit has been reached and further purchases are allowed with prior approval of RBI. None Companies where 22% FII limit has been reached and further purchases will be allowed with prior approval of RBI 1 Grasim Industries Limited 2 Mindtree Limited Companies where NRI/PIO Investment has already reached 10 % and no further purchases can be allowed 1 Chandraprabhu Housing Ltd

2 Coxswain Technology Ltd (Kaveri Biotech Ltd) 3 Dev Sugars Ltd 4 Dharendra Industries Ltd 5 DSQ Biotech Ltd 6 Fintech Communications 7 IQMS Software Ltd 8 Kakatiya Cement Sugar & Industries Ltd 9 Madras Aluminium Co. Ltd. 10 Rama Phosphates Ltd 11 SGN Telecom 12 SPL Ltd. 13 Squared Biotech Ltd 14 Tai Industries Ltd. 15 Goldcrest Finance (India) Limited (w.e.f. 14.11.2011) Companies where the NRI investment has reached the trigger point of 8% and further purchases are allowed only with prior permission of RBI 1 Codura Exports Ltd 2 Cosmo Films Ltd 3 Dalmia Cement (Bharat) Ltd 4 Deccan Cements Ltd 5 Garden Silk Mills Ltd. 6 Nexus Software Ltd 7 Polyplex Corporation Ltd 8 Premier Explosives Ltd Companies in which the Ban limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investment as stipulated by Government has been reached. Pantaloon Retail (India) Ltd. Companies in which the Caution limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached. None

Print Media Companies in which the Caution limit in respect of maximum permissible foreign holding including FDI/NRI/PIO/FII Investments as stipulated by Government has reached.

None Print Media Companies in which the Ban limit in respect of maximum permissible foreign holding including FDI/NRI/PIO/FII Investments as stipulated by Government has reached. None Public Sector banks in which 20% limit has been reached and no further investments are permitted None Public Sector banks in which 18% caution limit has been reached and further purchases by FIIs/NRIs/PIOs are allowed only with prior permission of RBI 1 Punjab National Bank

Private Sector Banks in which the Caution limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached 1 ING Vysya Bank Ltd. 2 IndusInd Bank Ltd 3 The South Indian Bank Limited Private Sector Banks in which the Ban limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached None Private Sector Banks in which the Caution limit in respect of FIIs Investment has reached. None Private Sector Banks in which the Ban limit in respect of FIIs Investment has reached. None Further purchases are allowed only with prior permission of RBI.

ReD No further purchases are allowed.