Govt may allow exchanges from the IFSC to issue depository receipts

The government is considering a proposal to allow exchanges from the International Financial Services Centre (IFSC), set up at the Gujarat International Finance Tec-City (GIFT City), to issue depository receipts (DRs). 

Market players have lobbied the government to allow DRs with an omnibus account structure to be listed and traded on IFSC exchanges, said people in the know. 

“Introduction of depository receipts at the IFSC exchanges will be a good way to allow Indian companies to raise dollar-denominated capital and enable capital formation for the Indian economy,” said V Balasubramaniam, managing director & chief executive officer (CEO), India INX. 

DRs