The new framework would come into force with immediate effect. SEBI has issued detailed procedure that needs to be followed for issuance of DRs, besides eligibility criteria for listed companies and obligations of Indian as well as foreign depositories and domestic custodians. Further, only a listed company is allowed to issue permissible securities or their holders may transfer such securities for the issuance of DRs which is subject to certain requirements. Listing out eligibility for issuance of DRs, the listed firms are allowed to issue such securities provided their promoters, directors and selling shareholders are not barred from the capital markets. Besides, they should not be wilful defaulters or economic offenders. Listed firms will be allowed to issue permissible securities for the purpose of the issue of DRs only in permissible jurisdictions and such DRs will be listed on specified international bourses, including Nasdaq, NYSE, Hong Kong Stock Exchange and the London Stock Exchange. Permissible jurisdiction, according to Sebi, includes a jurisdiction which has treaty obligations to share information and cooperate with Indian authorities in the event of any investigation.
October 14, 2019