Indian Depository Receipts: new rules let domestic depositories hold underlying foreign shares and set redemption conditions. Regulation 2 adds definitions for Domestic Depository, Eligible Company and Indian Depository Receipts by reference to the Companies (Issue of Indian Depository Receipts) Rules, 2004, with the Regulations deemed effective from 22 July 2009. Regulation 22(7) permits a Domestic Depository to acquire, hold and transfer equity shares abroad as underlying shares for issuing IDRs, and sets redemption conditions: listed companies and SEBI registered mutual funds may sell or retain underlying shares pursuant to specified Regulations of the principal FEMA Notification, while other residents including individuals may hold underlying shares only to sell within 30 days of conversion.