 "Sebi")
The Securities and Exchange Board of India (Sebi) is planning to clamp down on depository receipts (DRs) as part of efforts to check the flow of black money into the stock market.
Sources said Sebi planned to make it mandatory for foreign depositories to reveal details of end-beneficiaries holding DRs issued by Indian companies. The new framework will align know-your-customer (KYC) requirements for DRs with provisions to prevent money laundering.
Many Indian companies issue DRs to raise capital abroad. DRs have shares as an underlying asset and are typically issued by a bank, known as the depository bank, on behalf of a
