Indian Depository Receipts: framework allows foreign issuers to issue IDRs in rupees subject to FEMA and SEBI conditions. Foreign companies resident outside India may issue Indian Depository Receipts (IDRs) through a Domestic Depository subject to Companies (Issue of Depository Receipts) Rules, 2004 and SEBI (DIP) Guidelines; IDRs must be denominated in Indian Rupees, proceeds immediately repatriated, automatic fungibility is not permitted, and IDRs cannot be redeemed into underlying equity before one year. Investor participation rules specify FEMA-based conditions for residents, FIIs and NRIs, and redemption/conversion requires compliance with FEMA (Transfer or Issue of Any Foreign Security) Regulations, 2004, including limited holding periods for resident individuals and specified treatment for listed companies and mutual funds.
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.
Indian Depository Receipts: framework allows foreign issuers to issue IDRs in rupees subject to FEMA and SEBI conditions.
Foreign companies resident outside India may issue Indian Depository Receipts (IDRs) through a Domestic Depository subject to Companies (Issue of Depository Receipts) Rules, 2004 and SEBI (DIP) Guidelines; IDRs must be denominated in Indian Rupees, proceeds immediately repatriated, automatic fungibility is not permitted, and IDRs cannot be redeemed into underlying equity before one year. Investor participation rules specify FEMA-based conditions for residents, FIIs and NRIs, and redemption/conversion requires compliance with FEMA (Transfer or Issue of Any Foreign Security) Regulations, 2004, including limited holding periods for resident individuals and specified treatment for listed companies and mutual funds.
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