Framework for issue of Depository Receipts
Summary
This circular notifies the list of Permissible Jurisdictions and International Exchanges for the issuance of Depository Receipts by listed companies. It references the Central Government's notification dated November 28, 2019, which updates the framework established in October 2019. Stock exchanges and depositories are instructed to amend their bye-laws and disseminate these provisions to relevant market participants.
Text
The Central Government vide notification dated November 28, 2019, has notified the list of Permissible Jurisdictions... a list of Permissible Jurisdictions and International Exchange(s) is placed at Annexure A.
Stock Exchanges and Depositories are advised to: a) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above circular; and b) bring the provisions of this circular to the notice of the issuers, domestic custodians and also to disseminate the same on the website.
a Listed company shall be permitted to issue permissible securities or transfer Permissible Securities of existing holders, for the purpose of issue of DRs, only in Permissible Jurisdictions and said DRs shall be listed on any of the specified International Exchange(s) of the Permissible Jurisdiction.
‘Permissible Jurisdiction’ shall mean jurisdictions as may be notified by the Central Government from time to time, pursuant to notification no. G.S.R. 669(E) dated September 18, 2019 in respect of sub-rule 1 of rule 9 of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, and ‘International Exchanges’ shall mean exchanges as may be notified by SEBI from time to time.’
This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Framework for issue of Depository Receipts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.