i)

in the said Notification, for the words 'equity shares' or 'equity capital' wherever they occur, the words 'shares' or 'capital', shall be substituted.

ii)

in paragraph 3 of the said Notification,

(a)

for clause (i), the following clause shall be substituted, namely:-

'(i)

the foreign investment shall not in aggregate exceed 50%, 51%, 74% or 100% of the capital of the issuer company, as indicated in the said Annexure III;

Provided that in respect of the activity of generation and transmission of electric energy (being electric energy produced in hydro-electric power plants, coal/lignite based thermal power plants, oil based thermal power plants and gas based thermal power plants) the capital by way of foreign investment shall not exceed Rs. 1500 crores;

Provided further that for the purpose of reckoning the extent of foreign investment under this clause, preference shares carrying a conversion option, shall be included'.

(b)

after clause (iii), the following clause shall be added, namely:-

'(iii a) in the case of issue of convertible equity shares, the valuation procedure shall conform to the guidelines issued by the Bank or SEBI, as the case may be;'

(c)

in clause (iv), after the words 'required for the project', the words 'or for issue of shares', shall be inserted.

(d)

after clause (v), the following clause shall be added, namely -

'(v a) the rate of dividend payable in respect of preference shares shall not exceed SBI Prime Lending Rate (prevailing on the date of the Board meeting in which issue of shares is recommended) plus 300 basis points.'

(e)

after clause (vii), the following clause shall be inserted, namely:-

'(vii a) the issuer company files with the Regional Office of Reserve Bank, not
later than 30 days from the date of receipt of remittance, a report containing the following -

(a)

Name of the foreign investor;

(b)

Country of residence or incorporation of the foreign investor;

(c)

Date of receipt of remittance and its rupee equivalent;

(d)

Name and address of the authorised dealer in India through whom the remittance is received.'