Indian Depository Receipts (IDR) is a depository receipt issued by a depository in India denominated in Indian Rupees. These IDRs represent on ownership interest in a given number of share to the issuer. Depository receipts which are physical certificates allow investors to hold share in equity of other countries. SEBI has issued guidelines to foreign companies to raise capital in India by issuing Indian Depository receipts.
Once these receipts are issued and listed, they are traded through the stock exchange in a manner similar to other types of listed securities, Under the extent rule and regulation, IDRs may be held, purchased or transferred by resident in India, or to or for the account or benefit of such persons and non - president with SEBI.
The IDRs helders are treated by the issuer an equal footing compare to other share holders of shares in respect of all corporate actions like voting rights right to issues, payment of dividends and other distributions. The IDR holders are entitled to instruct the depository to exercise the voting rights in respect of shares represented by their issuers.
Once these receipts are issued and listed, they are traded through the stock exchange in a manner similar to other types of listed securities, Under the extent rule and regulation, IDRs may be held, purchased or transferred by resident in India, or to or for the account or benefit of such persons and non - president with SEBI.
The IDRs helders are treated by the issuer an equal footing compare to other share holders of shares in respect of all corporate actions like voting rights right to issues, payment of dividends and other distributions. The IDR holders are entitled to instruct the depository to exercise the voting rights in respect of shares represented by their issuers.
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