ADR/GDR ROUTE MAY BE CLOSED FOR REALTORS

Real Estate Companies are likely to be barred from issuing American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). This is because it may be difficult to enforce the conditions attached to Foreign Direct Investment (FDI) in real estate, particularly the stipulation that investors must lock in their investments for a minimum of three years. ADRs and GDRs are completely fungible and can change hands, and will defeat the lock-in stipulation in the FDI guidelines.