ECAP.L Regulatory News (ECAP)

2 May 2008 09:09

Promethean India PLC02 May 2008 Promethean India PLC FII Registration and Sub Account Registration from SEBI Promethean India PLC (AIM: PTHI) ("Promethean India") is pleased to announce theregistration of its Investment Manager, Promethean Investments LLP as a ForeignInstitutional Investor ("FII") with Securities and Exchange Board of India ("SEBI") with effect from 11 March 2008. The Indian government restricts access to foreign capital coming into the Indiancapital markets to FIIs. As a consequence most non-Indian institutionalinvestors invest in India through offshore derivative instruments, which arealso known as Participatory Notes or P-Notes. The P-Notes are themselves issuedby FIIs, who use the funds from the P-Notes to invest into the underlyingcompanies. In October 2007, the Indian government put restrictions on issue of P-Notes. Inparticular, FIIs could issue P-Notes up to a maximum of 40% of the FII's totalassets under custody. In addition, the FIIs and sub-accounts who had issuedP-Notes above the 40% limit with the underlying as derivatives were required tounwind their positions to the 40% limit over 18 months. Further, thesub-accounts who had issued P-Notes above the 40% limit were required to unwindtheir positions to the 40% limit over 18 months. At the introduction of the restriction the notional value of P-Notes wasestimated to be approximately 51.4% of all assets under all the FIIs present inIndia (source: Times of India, 17 October 2007). As a result, FIIs that hadexceeded the 40% limit have been allowed to issue P-Notes only againstcancellation, redemption or closing out of the existing P-Notes of at leastequivalent amount. By achieving the FII status, Promethean Investments LLP is able to investdirectly into the Indian capital markets and not rely upon P-Notes, giving theCompany considerable flexibility to carry out its investment strategy. Promethean India is also pleased to announce the registration of PrometheanIndia Investments Fund 2 as sub account of the Investment Manager, PrometheanInvestment LLP with SEBI. Enquiries: Gaurav Burman - Promethean Investments LLP +44 (0)207 479 7660Nandita Sahgal - Seymour Pierce Limited +44 (0)207 107 8000 Promethean India plc is managed by Promethean Investments LLP which isauthorized and regulated by the Financial Services Authority. Notes to Editors: Promethean India PLC Promethean India PLC, an investment company that focuses on businesses that areestablished or operating in India, was admitted to trading on the AlternativeInvestment Market ('AIM'), under the ticker symbol PTHI for the Ordinary Sharesand PTHW for the Warrants. The Company raised £50 million (gross of expenses) via a Placing of new OrdinaryShares and Warrants .The Company and its subsidiaries are advised by PrometheanInvestments LLP (the 'Investment Manager') and by an Indian resident investmentadviser (the 'Investment Adviser'). Promethean Investments LLP Promethean Investments LLP is a specialist fund manager that focuses on activistprivate equity investing in both quoted and private UK and Indian businesses.Promethean aims to acquire an interest in public and private companies where itbelieves opportunities exist to create or unlock near-term value. It combinesactive management, financial leverage and flexibility to create bespoke dealstructures for quoted and unquoted companies. Promethean Investments LLP manages Promethean Plc, a £57 million AIM quotedprivate equity fund and also manages Promethean India Plc, a £50 million AIMquoted private equity fund that targets value and growth opportunities in India. This information is provided by RNS The company news service from the London Stock Exchange