Advance Remittance for Import of Rough Diamonds RBI/2008-09/117 (DIR Series) Circular No.

03 4-Aug-08 To All Category I Authorised Dealer Banks Madam / Sir, Advance Remittance for Import of Rough Diamonds Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No 0.34 dated March 02, 2007 in terms of which AD Cate gory-I banks have been permitted to make advance remittance without any limit an d without bank guarantee or standby letter of credit, by an importer (other than a Public Sector Company or a Department / Undertaking of the Government of Indi a / State Government/s), for import of rough diamonds into India from the undern oted mining companies, subject to certain conditions Diamond Trading Company Pvt. Ltd., UK, RIO TINTO, UK, BHP Billiton, Australia, ENDIAMA, E. P. Angola, ALROSA, Russia, and GOKHARAN, Russia Based on the recommendations made by the Gems and Jewellery Export Promotion Cou ncil (GJEPC), it has been decided to include the undernoted mining companies in addition to the six mining companies listed above RIO TINTO, Belgium, and BHP Billiton, Belgium The terms and conditions mentioned in A. P. (DIR Series) Circular No. 34 dated M arch 02, 2007, including submission of report in the format annexed to the above circular, shall remain unchanged AD Category-I banks may bring the contents of this circular to the notice of the ir constituents and customers concerned The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and i s without prejudice to permissions / approvals, if any, required under any other law Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge Based on the recommendations made by the Gems and Jewellery Export Promotion Cou ncil (GJEPC), it has been decided to include the undernoted mining companies in addition to the six mining companies listed above RIO TINTO, Belgium, and BHP Billiton, Belgium The terms and conditions mentioned in A. P. (DIR Series) Circular No. 34 dated M arch 02, 2007, including submission of report in the format annexed to the above circular, shall remain unchanged AD Category-I banks may bring the contents of this circular to the notice of the ir constituents and customers concerned The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA),1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge Advance Remittance for Import of Rough Diamonds RBI/2008-09/133 (DIR Series) Circular No. 08 21-Aug-08 To All Category I Authorised Dealer Banks

Madam / Sir, Advance Remittance for Import of Rough Diamonds Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No 0.34 dated March 02, 2007 and A. P. (DIR Series) Ci rcular No0.03 dated August 04, 2008, in terms of which AD Category-I banks have been permitted to make advance remittance without any limit and without bank gu arantee or standby letter of credit, by an importer (other than a Public Sector Company or a Department / Undertaking of the Government of India / State Governm ent/s), for import of rough diamonds into India from the under noted mining comp anies, subject to certain conditions Diamond Trading Company Pvt. Ltd., UK, RIO TINTO, UK BHP Billiton, Australia ENDIAMA, E. P. Angola, ALROSA, Russia, GOKHARAN, Russia, RIO TINTO, Belgium and BHP Billiton, Belgium It is informed that, with effect from August 01, 2008, the name of the Diamond T rading Company Pvt. Ltd. UK has been changed to De Beers UK Limited Accordingly, the change in the name of the company may be noted by AD Category I banks The other terms and conditions mentioned in A. P. (DIR Series) Circular No.03 da ted August 04, 2008 shall remain unchanged AD Category-I banks may bring the contents of this circular to the notice of the ir constituents and customers concerned The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and i s without prejudice to permissions / approvals, if any, required under any other law Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge Allocation of FII Investment between debt and equity RBI/2008-09/240 (DIR Series) Circular No. 25 17-Oct-08 To, All Authorised Dealer Category I Banks Madam / Sir, Allocation of FII Investment between debt and equity Attention of Authorised Dealer Category-I (AD Category I) banks is invited to s ub-paragraphs i) & ii) of Paragraph 1 of Schedule 5 to FEMA notification No 0.20 dated May 3, 2000, as amended from time to time, in terms of which Foreign Inst itutional Investors are allowed to purchase, on repatriation basis, dated Govern ment securities/treasury bills, listed non-convertible debentures/bonds, commerc ial papers issued by an Indian company and units of domestic mutual funds and Se curity Receipts issued by Asset Reconstruction Companies either directly from th e issuer of such securities or through a registered stock broker on a recognized stock exchange in India, provided that the FII shall restrict allocation of its total investment between equity and debt instruments (including dated Governmen t Securities and Treasury Bills in the Indian capital market) in the ratio of 70 :30 if the FII desires to invest up to 100 per cent in dated Government Securities i ncluding Treasury Bills, non-convertible debentures/bonds issued by an Indian co mpany, it shall form a 100 per cent debt fund and get such fund registered with SEBI ; and the total holding by a single FII in each tranche of scheme of Secur ity Receipts shall not exceed 10 per cent of the issue and the total holdings of all FIIs put together shall not exceed 49 per cent of the paid up value of each

tranche of scheme of Security Receipts issued by the Asset Reconstruction Compa nies In order to accord flexibility to the FIIs to allocate their investments across equity and debt instruments, the Securities and Exchange Board of India (SEBI), in consultation with the Government of India, vide its Circular No IMD/FII & C/3 3/2007 dated October 16, 2008 has dispensed with the conditions provided in Regu lation 15 (2) of the SEBI FII Regulations pertaining to restrictions of 70: 30 r atio of investments in equity and debt, respectively Accordingly, it has been decided, to dispense with the existing provisions under FEMA Regulations, as mentioned in proviso above However, the stipulations made in proviso in respect of FII holdings in security receipts issued by Asset Reconstruction Companies shall continue AD Category I banks may bring the contents of this circular to the notice of th eir constituents and customers concerned Necessary amendments to the Foreign Exchange Management (Transfer or Issue of Se curity by a Person Resident Outside India) Regulations, 2000 (notification No.FE MA 20/2000-RB dated May 3, 2000) are being issued separately The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is witho ut prejudice to permissions/approvals, if any, required under any other law Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Go vernment of India and erstwhile USSR RBI/2008-09/195 A.P. (DIR Series) Circular No. 18 26-Sep-08 To, All Authorised Dealer Category I Banks Madam / Sir, Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR Attention of Authorised Dealer Category I (AD Category I) banks is invited to A.P. (DIR Series) Circular No. 10 dated August 21, 2008 wherein the rupee value of the special currency basket was indicated as Rs. 60.4392 effective from Aug ust 12, 2008 AD Category I banks are advised that a further revision has taken place on Sept ember 12, 2008 and accordingly, the rupee value of the special currency basket h as been fixed at Rs. 63.0186 with effect from September 17, 2008 AD Category I banks may bring the contents of this circular to the notice of th eir constituents concerned The directions contained in this circular have been issued under Sections 10 (4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is with out prejudice to permissions / approvals, if any, required under any other law Yours faithfully, (Salim Gangadharan) Chief General Manager-in-charge Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Go vernment of India and erstwhile USSR RBI/2008-09/135 (DIR Series) Circular No. 10 21-Aug-08 To, All Authorised Dealer Category I Banks Madam / Sir, Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Go vernment of India and erstwhile USSR Attention of Authorised Dealer Category I

(AD Category I) banks is invited to A.P. (DIR Series) Circular No. 52 dated Ju ne 11, 2008 wherein the rupee value of the special currency basket was indicated as Rs. 62.5198 effective from May 23, 2008 AD Category I banks are advised that a further revision has taken place on Augu st 07, 2008 and accordingly, the rupee value of the special currency basket has been fixed at Rs. 60.4392 with effect from August 12, 2008 AD Category I banks may bring the contents of this circular to the notice of th eir constituents concerned The directions contained in this circular have been issued under Sections 10 (4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is with out prejudice to permissions / approvals, if any, required under any other law