RBI amends fund raising rules for unlisted cos

The Reserve Bank of India has amended the rules for unlisted companies to raise capital through the issue of American Depository Receipts (ADRs) or Global Depository Receipts (GDRs).

This will be subject to RBI regulations including sectoral caps and pricing norms.

Also, the underlying equity shares are to be kept with a local custodian.

The changes are in line with a government move made in September allowing unlisted companies to list abroad even without listing in India.