IDR fungibility: Regulator okays 25% a year

Our Bureau Updated - August 28, 2012 at 09:34 PM.

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With this, the SEBI circular dated June 3, 2011, stands rescinded.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

Published on August 28, 2012 16:04
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