• search

SEBI's guidelines for Indian Depository Receipts

Written by: Staff
|

Mumbai, Apr 4: Securities and Exchange Board of India (SEBI) announced the guidelines for the Indian Depository Receipts (IDR) yesterday.

SEBI has set Rs 50 crore as the lower limit for the IDRs to be issued by the Indian companies. As per the norms, the minimum investment required in the IDR issue has been set at Rs two lakh.

Non-Resident Indians and Foreign Institutional Investors (FIIs) have been restricted from purchasing or possessing IDRs without special permission from the Reserve Bank of India (RBI).

Also, the IDR issuing company should have good track record with respect to securities market regualtions and companies not meeting the criteria will not be allowed to raise funds from the domestic market, SEBI said.

If the IDR issuer fails to receive minimum 90 per cent subscription on the date of closure of the issue, or the subscription level later falls below 90 per cent due to cheques not being honoured or withdrawl of applications, the company has to refund the entire subscription amount received, SEBI said.

Also, in case of delay beyond eight days after the company becomes liable to pay the amount, the company shall pay interest at the rate of 15 per cent per annum for the period of delay.

UNI

For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more