SEBI has allowed partial fungibility of Indian Depository Receipts in a financial year of up to 25 per cent of those originally issued.
Fungibility refers to redemption/ conversion of IDRs in underlying equity shares.
SEBI said instructions to modify the legal framework so that IDR conversion to equity and re-conversion of equity into IDR will be issued separately. This decision is in continuation to the Finance Minister’s Budget speech this year to permit two-way fungibility of IDRs.
With this, the SEBI circular dated June 3, 2011, stands rescinded.
raghavendrarao.k@
thehindu.co.in
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