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Statutory Approvals Required for issue of GDR/ADR

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked about 3 years ago

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2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered almost 3 years ago

1.The GDRs are issued in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Central Government thereunder from time to time. 2.A GDR is permitted by RBI under Automatic Route subject to the sectoral caps as specified vide Press Note No.14 (1997 series) dated 8th October 1997 issued by the Government of India, Ministry of Industry. 3.The company not covered under the Automatic route, would need to obtain prior Government clearance through FIPB.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered almost 3 years ago

1.The GDRs are issued in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Central Government thereunder from time to time. 2.A GDR is permitted by RBI under Automatic Route subject to the sectoral caps as specified vide Press Note No.14 (1997 series) dated 8th October 1997 issued by the Government of India, Ministry of Industry. 3.The company not covered under the Automatic route, would need to obtain prior Government clearance through FIPB. 4.There are no end-use restrictions on GDR/ADR issue proceeds, except for an express ban on investment in real estate and stock markets. 5.There is no limit up to which an Indian company can raise GDRs. 6.There is no restriction on the number of Euro-Issues to be floated by a company or a group of companies in a financial year.

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