SEBI simplifies listing norms for Indian Depository Receipts
16 Jun 2009
The Securities and Exchange Board of India (SEBI) has simplified the listing agreement for Indian Depository Receipts (IDRs), in order to reduce the additional regulatory or cost burden to the issuers.
SEBI has drafted a model listing agreement for IDR issuers with registered office in a country where the securities market regulator is a signatory to multilateral memorandum of uderstanding (MMOU) of the International Organisation of Securities Commissions (IOSCO), the market regulator said in its website.
The issuer is allowed to follow the home country requirements provided equitable treatment is given to the IDR holders vis-a-vis holders of equity shares, it added.
SEBI, in its circular no CFD/DIL/IDR/1/2006/3/4 of 3 April 2006, had notified the Indian Depository Receipts (IDR) model listing agreement.
With respect to most of the provisions, especially corporate governance requirements and disclosure of periodical results, the issuer has been allowed to follow the home country requirements provided equitable treatment is given to the IDR holders vis-à-vis holders of equity shares, SEBI said.
For the issuing companies from other jurisdictions, the existing model listing agreement for IDRs shall continue to apply till further advice in this regard, it said.
The full text of the circular and the simplified listing agreement is available on the SEBI website http://www.sebi.gov.in/