NEW DELHI : Markets regulator Sebi on Thursday came out with a detailed framework for issuance of depository receipts (DRs), a move that will provide Indian companies increased access to foreign funds. The framework comes after Finance Minister Nirmala Sitharaman in August said that the markets regulator would soon implement the Depository Receipt Scheme 2014. "This will give Indian companies increased access to foreign funds through American Depository Receipt (ADR)/ Global Depository Receipt (GDR)," she had said. A depository receipt is a foreign currency denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes global depository receipts (GDRs). In addition, existing holders will be eligible to transfer permissible securities for the purpose of issuance of DRs.

Source: Mint October 10, 2019 14:48 UTC