Briefly explain the following in relation to the issue of ADR (American Depository Receipts) & GDR (Global Depository Receipts) as per provision under companies (Issue of Global Depository Receipts) Rules, 2014: Two-

Answer 3(a) (i) Two-Way Fungibility Scheme Under two-way Fungibility Scheme, a stock broker in India, registered with SEBI, can purchase shares of an Indian company from the market for conversion into ADRs/GDRs based on instructions received from overseas investors. Re-issuance of ADRs / GDRs would be permitted to the extent of ADRs / GDRs which have been redeemed into underlying shares and sold in the Indian market. It means that the shares so released can be reconverted by the company into DRs for purchase by the overseas investors. It implies that the re-issuance of DRs would be permitted to the extent of DRs that have been redeemed and underlying shares are sold in domestic market.