Capital Markets Hotline

• New Depository Receipts Scheme notified, made applicable from December 15, 2014;
• Depository Receipts may be issued on the back of all securities as defined under the Securities Contract Regulation Act, 1956;
• Issuance of unsponsored Depository Receipts allowed;
• New Depository Receipts Scheme largely based on the recommendations made by the Sahoo Committee. At our webinar conducted recently, M.S. Sahoo (chairman of the Sahoo Committee) and our panel of experts have discussed the various legal, tax, and commercial implications of the Depository Receipts Scheme. To view the event material, please click here.

Introduction

Depository Receipts (DRs) in India were governed by the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993 ("1993 Scheme") as amended from time to time. On October 21, 2014, the Ministry of Finance ("MoF") notified ("Notification"), the Depository Receipts Scheme, 2014 ("New Scheme")