Foreign Companies Issuing IDRs Must Comply with Rule 13: Financial Criteria, SEBI & RBI Approvals Needed
The Companies (Registration of Foreign Companies) Rules, 2014, Rule 13, governs the issuance of Indian Depository Receipts (IDRs) by foreign companies. To issue IDRs, a company must meet specific financial criteria, have a trading history, and comply with additional requirements set by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India. The process involves obtaining necessary approvals, filing a prospectus, and appointing relevant financial intermediaries. IDRs are denominated in Indian Rupees and must be listed on recognized Indian stock exchanges. The rule outlines detailed procedural and disclosure requirements to ensure compliance and transparency.
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