Investment in Overseas Markets
AP (DIR Series) (2002-2003) Circular No. 38, dated 2-11-2002
Attention
of authorised dealers is invited to item (i) of paragraph 3 of AP (DIR Series)
Circular No.40 dated April 29, 2002 in terms of which authorised dealers have
been permitted to invest the undeployed FCNR (B) funds in overseas markets in
long-term fixed income securities subject to the rating requirements stipulated
in the AP (DIR Series) Circular No.19 dated January 24, 2002.
*2. It has now
been decided that authorised dealers may henceforth invest undeployed FCNR (B)
funds in overseas markets in long-term fixed income securities rated at least
AA by Standard and Poor, or Aa3 by Moody’s or AA by Fitch IBCA.
3. All
other instructions contained in AP (DIR Series) Circular No.40 dated April 29,
2002 remain unchanged.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).