Status of a holder of Global Depository Receipts (GDRs) – Clarification regarding

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....istrar of Companies, Subjects:- Status of a holder of Global Depository Receipts (GDRs) - Clarification regarding Sir, A question has arisen whether a non-resident holder of Global Depository Receipts is a member of the issuing company within the meaning of section 41 and 42 of the Companies Act, 1956. 2. 'Global Depository Receipts' (GDRs) has been defined under the Issues of Foreign ....

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....to a Domestic Custodian Bank who will, in terms of agreement, instruct the Overseas Depository Bank to issues Global Depository Receipt or Certificate to non-resident investors against the shares or bonds held by the Domestic Custodian Bank.      (iii) A non-resident holder of Global Depository Receipts may transfer those receipts, or may ask the Overseas Depository Bank to ....

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....red under the Companies Act, 1956 and has been granted certificate of registration under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992. 5. Accordingly, it is hereby clarified that      (a) As per section 41(1) & (2) of the Companies Act, a person is a member of the company,           ....

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....56 and the Depository Act, 1996  nor holding the shares capital, therefore, it cannot be deemed to be a member of the company.      (c) A holder of Global Depository Receipts may become a member of the company only on transfer/redemption of the GDR into underlying equity shares after following the procedure provided in the "Scheme"/provisions of the Companies Act, 1956.....