New depository receipts scheme from December 15

The new depository receipts scheme, that allows Indian entities to raise funds from 34 foreign jurisdictions, will come into effect from December 15.
Notifying the scheme, Finance Ministry said that any domestic company, both listed and unlisted, and any other issuer of permissible securities would be allowed to raise money overseas.
"The aggregate of permissible securities which may be issued or transferred to foreign depositories for issue of depository receipts, along with permissible securities already held by persons resident outside India, shall not exceed the limit on foreign holding of such permissible securities under FEMA," the Ministry said.
The new scheme would replace the issue of Foreign currency convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993. However, those related to foreign currency convertible bonds would be in place.

Under the 'Depository Receipts Scheme, 2014', Indian entities can raise money in 34 jurisdictions including Argentina, Australia, Brazil, China, Finland, France, Greece, Iceland, Ireland and Italy.
Other countries including Japan, Luxembourg, Mexico, Norway, Portugal, Russia, South Africa, Spain, Switzerland, Turkey, United Kingdom and United States.