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Rule 4 - Eligibility for issue of IDRs. - Companies (Issue of Indian Depository Receipts) Rules, 2004Extract Eligibility for issue of IDRs. 04. Without prejudice to anything contained in the Securities and Exchange Board of India Act, 1992, an issuing company may issue IDRs only if it satisfies the following conditions: (a) Its pre-issue paid-up capital and free reserves are at least US$ 100 millions and it has had an average turnover of US$ 500 million during the 3 financial years preceding the issue. (b) It has been making profits for at least five years preceding the issue and has been declaring dividend of not less than 10% each year for the said period. (c) Its pre-issue debt equity ratio is not more than 2:1. (d) It shall fulfil the eligibility criteria laid down by SEBI from time to time in this behalf.
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