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Permitting two-way fungibility in Indian Depository Receipts (IDRs) subject to a ceiling will encourage greater foreign participation in Indian capital market, say marketmen
“It impacts only one company in isolation,” said Mr Kishor Ostwal, CMD, CNI Research “However, it may prompt some other companies to float from IDRs.”
“The two- way fungibility process is being facilitated at last,” said Dr Nirakar Pradhan, CIO Future Generali Life Insurance. “IDRs here are trading at a discount,” said Mr Hemant Kanawala, Head-Equity, Kotak Life Insurance.
“Directionally IDRs don't make sense for India as it is a capital scarce economy.”
“The intention was to have two-way fungibility when it was first issued in India,” said Mr. Arun Kejriwal, Founder KRIS Research.
“It is almost a year after disallowing implementation of two-way fungibility which was done with less than a week to go for implementation. The Government, realising its mistake is doing it through the Budget.”
> raghavendrarao.k@thehindu.co.in
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