Mention the Regulatory Framework in India for Issue of ADR/GDR/FCCBs/FCEBs.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2021
Mention the Regulatory Framework in India for Issue of ADR/GDR/FCCBs/FCEBs.
Answer & Explanation:
Capital can be raised from international capital market in foreign currency by accessing foreign capital market. Funds raised through foreign currency are called as euro equity or debt. Indian companies are allowed to raise capital in the international market through the issue of GDR/ADR/FCCB/FCEB and through External Commercial Borrowings. Issuance of ADR/GDR/FCCBs/FCEBs are regulated by the following regulations in India: The Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 Foreign Currency Exchangeable Bonds Scheme, 2008 Depository Receipts Scheme, 2014 Notifications/Circulars issued by Ministry of Finance (MoF), GOI. Consolidated FDI Policy. RBI Regulations/Circulars. Companies Act and Rules thereunder. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Topics: International Capital Markets
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