DEPOSITORY RECEIPT REGIME REVIEW: INDIA'S TRUST WITH DEPOSITORY RECEIPTS
- India's first depository receipt (DR) programme for Reliance Industries established in 1992
- Since then 330 companies have created DR programme
- 13 listed on New York Stock Exchange or NASDAQ
- 24 listed on London Stock Exchange
- Remainder used Luxembourg Stock Exchange or Singapore Stock Exchange
In permitting OTC non-capital-raising DRs, India would join 67 other countries. The instrument would allow an overseas investor to ask his local broker to purchase shares of a company which can then be converted into Depository receipts. Current regulations do not allow for issuing Depository receipts where there is no capital raising by the company.