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IDRs to come under Sebi regulation: Bajpai

IDRs or Indian Depository Receipts, proposed on the lines of ADRs and GDRs, will come under the ambit of Sebi, after they are listed on Indian bourses.

This was announced by G N Bajpai, chairman, Securities and Exchange Board of India, while speaking to the reporters after delivering a lecture at Delhi School of Economics on Wednesday.

He further said that following Finance Minister Jaswant Singh's announcement, the Department of Company Affairs has been asked to frame detailed guidelines for foreign companies eager to raise funds from the Indian capital market through IDRs.

Bajpai said while Sebi would not regulate the companies that intend to raise funds, it would, however, monitor the IDRs of the multi-national companies.

DCA has been consulting professional bodies like Institute of Chartered Accountants of India and Institute of Company Secretaries for framing the guidelines, which are expected to be announced within a month.

Use of depository systems of NSDL (National Securities Depository Ltd) and CSDL (Central Depository Services Ltd), norms for holding roadshows, pricing issue and disclosure requirements are some of the aspects that are being looked into.

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