Sebi to allow IDRs THIS year

Indian Depository Receipts (IDRs), dedicated exchange for Small and Medium Enterprises (SMEs) and a debit market-based product for infrastructure financing figure prominently in Securities & Exchange Board of India’s (SEBI’s) plan of action over the next 12 to 18 months. Foreign companies will be able to raise funds in the Indian stock markets by 2007, with Sebi saying that it expected IDRs to be operational from this year. This would ensure that foreign companies raise funds in the Indian market in a cost-effective manner. In the next 12-18 months, some of the biggest companies in the world would be filing for IDRs. A dedicated exchange for SMEs to prevent them from the hassle of going to London to raise money is also on the cards in 2007.