Don't want to miss the best from Business Standard?
The government today operationalised the scheme for providing two-way fungibility for American Depository Receipts and Global Depository Receipts. The Securities and Exchange Board of India has been made the regulatory authority for the market.
The two separate notifications issued by the RBI and finance ministry today says the transfer of shares into and out of ADR/GDR will be distinct from portfolio investment by FIIs. Fungibility of shares between overseas holdings and local markets was meant to the domestic markets more broad based and was promised in the budget for 2001-02.
Under the scheme ADRs/GDRs issued against Indian companies may be converted to domestic shares of the companies and may again be re-converted to ADRs/GDRs, but being subject to sectoral caps wherever applicable.
The RBI notification says since the buy and sell operations will not require company involvement or fresh permission to issue ADR/GDR
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app