To make raising funds overseas easier by Indian companies, the government will soon notify a liberalised ADR/GDR regime and necessary amendments will be made by financial sector regulators - RBI and Sebi in this regard.
The revised norms would allow issuance of depository receipts on all permissible securities.
The liberalised ADR (American Depository Receipt)/GDR (Global Depository Receipt) norms were proposed by the Finance Minister Arun Jaitley during the last budget in July.
Giving an update on the proposal, the Budget said, "...Revised ADR/GDR scheme has been accepted and will be notified shortly after the enabling amendments are made by RBI (Reserve Bank of India) and Sebi (Securities and Exchange Board of India."
With regard to international settlement of Indian debt securities, the document said: "Deliberations are going on with the RBI and Sebi to finalise and implement Euroclearability of Indian Debt Securities."
Under the revised ADR/GDR regime, domestic companies will be allowed to issue depository receipts -- an instrument to raise funds from overseas -- on all kinds of securities such as debt, equity and mutual fund units.
