SEBI issues guidelines for IDR conversion
Mumbai: Market regulator, Securities and Exchange Board of India (SEBI) came out with a detailed framework for conversion of Indian Depository Receipts (IDRs) into equity shares, as part of efforts to attract more foreign companies to get listed on the domestic bourses.
IDRs are generally instruments denominated in rupees and allow overseas companies to raise funds from the Indian market.
The SEBI has said that IDRs cannot be redeemed into underlying equity shares for a period of one year from the date of its listing.
Also, the issuer would provide two-way fungibility for IDRs. Thereby, Indian shareholders can convert their depository receipts into equity shares of the issuer company and vice versa.
The fungibility option would be available on a continuous basis and at the time of conversion 20 per cent would be reserved for retail investors.
Fungibility was seen as a major issue with foreign companies in getting listed on domestic bourses. So far, only UK banking major StanChart has come out with their IDRs.
The Delhi Police is likely to conduct more raids in connection with the IPL spot-fixing scandal. Teams of the Delhi Police's special cell have been sent to Mumbai, Ahmedabad, Hyderabad, and Kolkata to conduct searches and track the money trail in the IPL spot-fixing case.
Date 17-05-13, Duration 1:21, Views 366