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Mumbai Feb 5 To check any possible interference of depositories in the management of banks, issuing American Depository Receipts or Global Depository Receipts, the RBI has advised banks to furnish a copy of each of the depository agreements entered into.

In a circular issued to banks on Monday, the RBI said to eliminate possibility of any interference of the depositories in the management of the bank, banks should give an undertaking to the RBI that they would not give cognisance to voting by the depository, should the depository vote in contravention of its agreement with the bank. No change should be made in terms of the depository agreement without prior approval of the RBI.

Banks such as ICICI Bank, UTI Bank, HDFC Bank and Federal Bank are among the banks that have issued GDRs or ADRs.

Banks issue shares to the depositories who in turn issue ADRs or GDRs to the ultimate investors.

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Bank GDRs: RBI move to curb depositories interference

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