The Securities Exchange Board of India(SEBI) in its Notification dated 28th November 2019 has issued a new framework for issue of depository receipts(DRs) for greater exposure by raising capital from world markets and enhancing their shareholder base.
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.
SEBI in its earlier notification dated 10th October 2019, has stated that a Listed company shall be permitted to issue permissible securities or transfer Permissible Securities of existing holders, for the purpose of issue of DRs, only in Permissible Jurisdictions and said DRs shall be listed on any of the specified International Exchange(s) of the Permissible Jurisdiction.
Subsequently, on November 28, a list of permissible jurisdictions and international exchanges has also been prescribed by SEBI which is placed in Annexure A to the circular.
Following is the list of Permissible Jurisdictions and International Exchanges: –
- United States of America – NASDAQ, NYSE
- Japan – Tokyo Stock Exchange
- South Korea – Korea Exchange Inc.
- United Kingdom excluding British Overseas Territories- London Stock Exchange
- France – Euronext Paris
- Germany – Frankfurt Stock Exchange
- Canada – Toronto Stock Exchange
- International Financial Services Centre in India – India International Exchange, NSE International Exchange
Click here to read the Notification.
