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Sebi notifies international exchanges for issuance of depository receipts

Nov 29, 2019, 13:32 IST
PTI
New Delhi, Nov 29 () Capital market regulator Sebi has come out with a list of eight jurisdictions and international exchanges where listed firms will be allowed to give permissible securities for issuing depository receipts.

Those in the list include the US-based NASDAQ and NYSE, Japan's Tokyo Stock Exchange, South Korea's Korea Exchange and the UK-based London Stock Exchange, the Securities and Exchange Board of India (Sebi) said in a circular.

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Besides, France-based Euronext Paris, Germany's Frankfurt Stock Exchange, Canada based Toronto Stock Exchange and International Financial Services Centre (IFSC) in India are also part of the list, it added.

This comes after the regulator in October gave a detailed framework for issuance of depository receipts (DRs) and said that listed firms will be allowed to issue permissible securities for the purpose of issue of DRs only in permissible jurisdictions.

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.

Sebi had 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.

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A depository receipt is a foreign currency denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes global depository receipts. SRS ANS ANS

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