TaxTMI 
TaxTMI 
Question - What are the proposed amendments in Global Depository receipts (GDRs) in Finance Bill 2015 ?
Amendments relating to Global Depository receipts (GDRs)
28 Feb 2015 
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Global Depository Receipts definition narrowed to equity backed listed issuances; tax benefits limited to earlier sponsored GDRs.
Global Depository Receipts taxation will be narrowed by amending the definition to instruments issued by an overseas depository against ordinary shares of an issuing company listed on a recognised stock exchange in India or against foreign currency convertible bonds. This confines tax-favourable treatment to the class of GDRs contemplated under the earlier, limited depository regime and excludes the broader categories permitted under the newer Depository Receipts framework, thereby restricting eligibility for the Act's benefits to the redefined GDRs. (AI Summary)
Global Depository Receipts taxation will be narrowed by amending the definition to instruments issued by an overseas depository against ordinary shares of an issuing company listed on a recognised stock exchange in India or against foreign currency convertible bonds. This confines tax-favourable treatment to the class of GDRs contemplated under the earlier, limited depository regime and excludes the broader categories permitted under the newer Depository Receipts framework, thereby restricting eligibility for the Act's benefits to the redefined GDRs. (AI Summary)