IDR guidelines round the corner

The Securities and Exchange Board of India (Sebi) is planning to come up with guidelines and regulations for Indian Depository Receipts (IDRs) in the near future. This apart, it is also framing strategies for better infrastructure in the primary markets.

Sebi also has indicated that it does not have any immediate plans to hike the investment limit for a retail investor who invests in a public issue.

Sebi categorises a retail investor as one who invests up to Rs 50,000 in a public issue. Any amount above this makes the individual a high networth individual (HNI) under Sebi's existing categorisation.

Sudev C Das, executive director, Sebi, said that foreign banks and institutions were sending feelers to be listed on Indian stock exchanges.

Sebi, Das said was working on creating the regulatory framework required to enable foreign companies to raise money from Indian investors.

"We will also be coming up with recommendations through the Securities Market Infrastructure Leveraging Expert (SMILE) report in the next two or three months," Das said on the sidelines of 'Indian capital markets conference, 2004' organised by the Indian School of Business (ISB).

By reviewing equity, debt and derivative markets, besides examining existing depositories, investment bankers, trading platforms, settlement systems and registrars, it will suggest ways to ensure that the capital markets grow with the future needs of the markets.

Inadequacies in public sector offerings in March had, incidentally, promoted this move.