The Chief Executives of all

Exchange Companies

Dear Sirs / Madam,

Amendment in Rules related to Formation of New Exchange Companies

Attention of Exchange Companies is invited to Annexure-II, Rule No. 3 of F.E. Circular No. 9 of 2002 in terms of which the minimum paid-up capital for new exchange companies would be Rs. 100 million which has to be increased to Rs. 200 million within three years from the date of incorporation.

It has now been decided that the minimum paid-up capital of all new exchange companies will be Rs. 200 million. Further, all existing exchange companies that do not meet the minimum capital requirements must fulfill the same as per the timeline given to them to avoid regulatory action.

All other instructions on the subject shall remain unchanged.