Global Depositary Receipt eligibility for knowledge based companies allows employee and subsidiary share offerings under specified conditions. Indian companies registered in India deriving at least eighty percent of turnover in the three preceding financial years from specified knowledge based ... Summary
Global Depositary Receipt eligibility for knowledge based companies allows employee and subsidiary share offerings under specified conditions.
Indian companies registered in India deriving at least eighty percent of turnover in the three preceding financial years from specified knowledge based sectors may offer Global Depositary Receipts against ordinary shares to non resident and resident permanent employees (including working directors) and to employees of subsidiary companies, subject to Scheme eligibility conditions and operational guidelines. Specified sectors include Information Technology and Entertainment Software, Pharmaceuticals, Biotechnology, and other government notified knowledge based activities. Multi product diversified companies not meeting the turnover threshold may qualify based on specified average annual export earnings.
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