SEBI approval required for IDR issue
New Delhi: Companies planning to raise funds in India through the Indian depository receipts (IDR) route will have to obtain the consent of the Securities and Exchange Board of India (SEBI) before making an issue of IDR through a domestic depository. This requirement is in variance to the earlier thinking of the government, which was in favour of stipulating permission from the Department of Company Affairs (DCA) for the issuance of IDRs.

The IDR route will only be available to those companies that are incorporated outside India. Such companies, however, need not have established any place of business in the country. IDR means any instrument in the form of depository receipt created by domestic depository in India against the underlying equity shares of the issuing company. In yet another departure from an earlier thinking, the proposed rules on IDRs, which are soon to be prescribed by the government, are silent on the need for listing the underlying shares of the IDRs in an international bourse to begin with. As per the proposed rules, an issuing company would only require listing of IDRs in recognised stock exchanges in India.
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HDFC Bank, ICICI Bank end on a firm note
Mumbai: The US stock markets ended the week on a mixed note, says a media report. Old economy stocks such as Alcoa Inc, the world's largest aluminium maker, and International Paper Co, a paper and lumber major, pushed the Dow Jones Industrial Average and S&P 500 higher on expectations that US manufacturing activity will pick up. The S&P 500 rose 0.3 per cent last week and the Dow added 0.8 per cent. The Nasdaq Composite Index, however, slipped 1.1 per cent on concern that profit expectations of IT majors may be too high; Intel Corp had announced that its fourth-quarter sales will increase but that fell short of some analysts' expectations.

Indian bourses, which started the week on promising note, closed weakly due to profit bookings. During the week, the Bombay Stock Exchange (BSE) Sensex ended 1.73 per cent higher at 5,131.72 points, even as it slipped from a 43-month closing high of 5,225.90 points on Thursday; the NSE CNX Nifty came off from early high and ended the week with a gain of 1.89 per cent at 1,645.80 points.
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