Indian companies are allowed to raise equity capital in the international market through the issue of ADR/GDR/FCCB/FCEB. Briefly discuss the regulatory framework of ADR & GDR in India.
CS Executive · Capital Markets & Securities Laws · PYQS · June 2018
Indian companies are allowed to raise equity capital in the international market through the issue of ADR/GDR/FCCB/FCEB. Briefly discuss the regulatory framework of ADR & GDR in India.
Answer & Explanation:
Indian companies are allowed to raise capital in the international market through issue of ADR/GDR, which are regulated by the following legislations in India: The Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 Depository Receipts Scheme, 2014 Notifications/Circulars issued by Ministry of Finance (MoF), GOI Consolidated FDI Policy RBI Regulations/Circulars Companies Act, 2013 and Rules thereunder Listing Regulations.
Topics: International Capital Markets
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