New Delhi: The Government has allowed Indian companies to come out with sponsored ADR, GDR issues against shares of existing shareholders.
An official release, however, said on Wednesday that this would be allowed subject to certain conditions.
Those unlisted companies which have not issued foreign currency convertible bonds, ADRs, or GDRs prior to August 31, 2005, would require to list on the domestic stock exchanges before or along with issuing or sponsoring these overseas issues against shares of their existing shareholders.
The unlisted companies, which had issued FCCBs, ADRs/GDRs prior to August 31, 2005 and are not making profit may be permitted to sponsor issues against shares of its existing shareholders.
These companies may be permitted to comply with listing conditions on the domestic stock exchanges within three years of having started making profit.
This facility would be available to all categories of shareholders of the company concerned, whose shares are being sold in the ADR, GDR market overseas.
These issues would need to conform to FDI policy and other mandatory requirements, the release said.
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