Sebi announces guidelines for issue of depository receipts by Indian cos

NRIs barred from investing in shares issued by Indian companies in overseas market

The Securities and Exchange Board of India (Sebi) has put in place a framework for domestic companies to raise capital by issue of so-called depository receipts (DRs). The move, which follows a budget announcement in this regard, will allow listed Indian companies to issue either equity, or debt, to investors on the overseas stock exchanges such as NYSE, Nasdaq and Hong Kong Stock Exchange.

Experts have welcomed the move by Sebi to issue a framework on DRs.

“Sebi’s discomfort has been DRs which were being issued with Indian shares, but the process was largely not overseen by any dometic regulator. Now, Sebi