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Tuesday, Jul 09, 2002

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ADR, GDR funds for PSU share buys allowed

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AFTER opening up the external commercial borrowings (ECBs) route, the Government on Monday allowed Indian companies to utilise the proceeds of global depository receipts (GDRs) and American depository receipts (ADRs) for funding the acquisition of PSU shares in the disinvestment programme.

The end-use restrictions on the use of ADR, GDR proceeds for investment in stock markets has been eased by the Government only in the case of acquisition of shares disinvested by the Government in a PSU.

Indian companies will now be in a position to utilise the proceeds of ADRs and GDRs to fund both the first stage of the disinvestment process and also the second stage open offer to the public.

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