ADR/GDR/FCCB proceeds may be used to fund divestment subject to repatriation, approvals, and sectoral FDI limits. Sponsored issues of ADRs/GDRs/FCCBs against existing shares are permitted for divestment, subject to compliance with depository receipt scheme rules and government guidelines; companies must offer the facility pari-passu, secure a special resolution, repatriate proceeds within one month, limit escrow retention to three months, treat tranches as separate transactions, furnish full particulars to the Exchange Control Department within 30 days, and obtain required approvals including FIPB clearance where foreign equity induction occurs.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
ADR/GDR/FCCB proceeds may be used to fund divestment subject to repatriation, approvals, and sectoral FDI limits.
Sponsored issues of ADRs/GDRs/FCCBs against existing shares are permitted for divestment, subject to compliance with depository receipt scheme rules and government guidelines; companies must offer the facility pari-passu, secure a special resolution, repatriate proceeds within one month, limit escrow retention to three months, treat tranches as separate transactions, furnish full particulars to the Exchange Control Department within 30 days, and obtain required approvals including FIPB clearance where foreign equity induction occurs.
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