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K.R. Srivats

New Delhi, Oct. 25 The Jefferies, a global investment bank, sees more Indian companies using the global depository receipts (GDR) route in the coming days to raise capital in the international capital markets.

At the same time, it also expects the convertibles market to be an active one despite the Indian Government’s recent move to change the external commercial borrowing (ECBs) rules to introduce certain repatriation restrictions.

“I see more Indian companies using the GDR market. GDR was in fashion. It fell out of fashion and its now back in fashion,” Mr Edward Males, head of Jefferies Indian Investment banking office, told Business Line.

Jefferies, on Thursday, announced the opening of a representative office in India (New Delhi). This subsidiary office of the US-based Jefferies Group Inc would be staffed with an initial team of nine professionals led by Mr Edward Males, Managing Director at the firm.

On whether changes in ECB rules would be a dampener to growth of convertibles market here, Mr Males said the rule change has dampened the appetite of companies looking to use this product. “Earlier, lot of money was raised and repatriated back to India through this route. Now you can only repatriate $20 million into India. Whether convertibles would continue to grow after the changes in ECB rules is uncertain,” he said.

Although Jefferies is a full service investment bank and securities firm, it plans to initially focus only on investment banking for the Indian operations, according to Mr Brian Friedman, Director of Jefferies Group Inc.

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