SEBI allowed Partial Flexibility in IDRs for Investors

Aug 29, 2012, 16:01 IST

Economy Current Affairs August 2012. India’s market regulator Security and Exchange Board of India (SEBI) on 28 August 2012 allowed partial flexibility in the Indian Depository Receipts

India’s market regulator Security and Exchange Board of India (SEBI) on 28 August 2012 allowed partial flexibility in the conversion of Indian Depository Receipts (IDRs) into equity shares by investors. The SEBI move is aimed at retaining domestic liquidity besides, it is also expected to attract foreign entities to enroll their IDRs on India stock exchanges.

In another circular released by the RBI, the central bank put an overall cap of 5 billion dollar for raising of capital through IDRs by foreign companies in Indian markets. The RBI measure will help Indian investors to convert their depository receipts into equity shares of the issuer company and vice versa.

Jagran Josh
Jagran Josh

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