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Saturday, Oct 26, 2002

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Only listed cos may be allowed to offer IDRs

K.R. Srivats

NEW DELHI, Oct. 25

ISSUANCE of Indian depository receipts (IDRs) may be restricted to only listed overseas companies having good profitability record, according to a Department of Company Affairs (DCA) official.

``The current thinking in the Department is only to allow overseas listed companies to offer IDRs. The idea is to ensure that only well regulated companies with good profitability record are allowed to offer IDRs'', a DCA official told Business Line here.

The DCA, which is in the process of framing rules on issuance of IDRs, is in consultations with various stakeholders including the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and merchant bankers on this matter.

``We have received certain inputs from SEBI, the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries. There have to be discussions with the RBI. It will take us a month before the rules are finalised'', the DCA official said.

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