The Ministry of Finance, through a press release dated 27 September 2013, has permitted unlisted Indian companies to list American depository receipts (ADRs), global depository receipts (GDRs) or foreign currency convertible bonds (FCCBs) abroad on a pilot basis for two years without a listing requirement in India. Previously, an Indian company could not list directly on an offshore stock exchange without a prior, simultaneous or subsequent listing in India.
Pursuant to the press release, the central government, through a notification dated 11 October, amended the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993. The Reserve Bank of India (RBI) then followed this up with a circular dated 8 November directing the attention of authorized dealers towards the amendment to the scheme.
The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.