Wednesday, June 15, 2011

SEBI ALLOWS IDR REDEMPTION ONLY IF LIQUIDITY IS LOW

The redemption would be permitted only if the Indian Depository Receipts(IDRs) are infrequently traded on Stock Exchanges in India. The only Indian Depository Receipts(IDR) listed on National Stock Exchange(NSE) and Bombay Stock Exchange(BSE) is that of Standard Chartered Bank.
For every equity share of stan chart, 10 Indian Depository Receipts(IDRs) were issued. The Standard
Chartered Red herring prospectus has stated that Indian Depository Receipts(IDRs) could not be redeemed into underlying shares before the expiry of one-year period from the date of issue of Indian Depository Receipts(IDRs).

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