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SEBI, in a notification released on Friday, said that the companies which offer Indian depository receipts (IDRs) through the rights issue have to file a document with the regulator.
“Every listed issuer offering IDRs through a rights issue shall prepare the offer document in accordance with the home country requirements,” said SEBI in the notification.
The regulator through, a notification amended the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, by adding a chapter on the rights issue of Indian Depository Receipts (IDRs).
SEBI also said that if a company is in breach of the IDR listing agreement then it cannot come out with a rights offer. The issuing company would also have to inform the exchanges where the existing IDRs are listed. Also, the IDRs would have to be listed on any one of the exchanges in the country.
Only Standard Chartered has so far come out with an IDR issue.
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