Home Acts & Rules Companies Law Old_Provisions Companies (Issue of Indian Depository Receipts) Rules, 2004 This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Rule 5 - Procedure for making an issue of IDRs. - Companies (Issue of Indian Depository Receipts) Rules, 2004Extract Procedure for making an issue of IDRs. 05. (i) (a) No issuing company shall raise funds in India by issuing IDRs unless it has obtained prior permission from the SEBI. (b) An application seeking permission under clause (a) shall be made to the SEBI at least 90 days prior to the opening date of the issue, in such form furnishing such information as may be notified from time to time with a non-refundable fee of US $ 10,000: Provided that, on permission being granted, an applicant shall pay an issue fee of half a per cent of the issue value subject to a minimum of Rs. 10 lakhs where the issue is upto Rs. 100 crore in Indian rupees: Provided further where the issue value exceeds Rs. 100 crore, every additional value of issue shall be subject to a fee of 0.25 per cent of the issue value. (c) The SEBI may, on receipt of an application, seeking permission under clause (a), call for such further information, and explanations, as may be necessary, for disposal of such application. (d) The issuing company shall obtain the necessary approvals or exemption from the appropriate authorities from the country of its incorporation under the relevant laws relating to issue of capital, where required. (e) The issuing company shall appoint an overseas custodian bank, a domestic depository and a merchant banker for the purpose of issue of IDRs. (f) The issuing company shall deliver the underlying equity shares or cause them to be delivered to an Overseas Custodian Bank and the said bank shall authorize the domestic depository to issue IDRs. (g) The issuing company shall file through a merchant banker or the domestic depository a due diligence report with the Registrar and with SEBI in the form specified. (ii) (a) The issuing company shall, through a merchant Banker file a prospectus or letter of offer certified by two authorized signatories of the issuing company, one of whom shall be a whole-time director and other the Chief Accounts Officer, stating the particulars of the resolution of the Board by which it was approved, with the SEBI and Registrar of Companies, New Delhi, before such issue. (b) The draft prospectus or draft letter of offer shall be filed with SEBI, through the merchant banker, at least 21 days prior to the filing under clause (a): Provided that if within 21 days from the date of submission of draft prospectus or letter of offer, SEBI specifies any changes to be made therein, the prospectus shall not be filed with the SEBI/ Registrar of Companies unless such changes have been incorporated therein. (iii) The issuing company, seeking permission under sub-rule (i) above, shall obtain in-principle listing permission from one or more stock exchanges having nation wide trading terminals in India. (iv) The issuing company may appoint underwriters registered with SEBI to underwrite the issue of IDRs.
|