INDIAN DEPOSITORY

RECEIPTS (IDRs)
PRESENTED TO: Mrs. GARIMA
SAHGAL
PRESENTED BY: ARVIND YADAV
EIILM
UNIVERSITY SIKKIM
DIFINATION:
Indian Depository
Receipts is a
financial instrument
it allows the foreign
companies to
mobilizing funds
from Indian markets
by offering equity
and become listed
on Indian stock
exchanges.
Who can Issue The IDRs?
 As per the definition given in the Companies (Issue of
Indian Depository Receipts) Rules, 2004, only listed
companies of its own country can issue the IDRs.
 IDR issue will require approval from SEBI and application
can be made for this purpose 90 days before the issue
opening date.
 The overseas company intending to issue IDRs should
have paid up capital and free reserve of at least $ 100
million.
 It should have an average turnover of $ 500 million
during the last three years.
 Such company should also have earned profits in the
last 5 years and should have declared dividend of at
least 10% each year during this period.
Norms for the issuance of IRDs
The size of the IDRs issue should not be less
than Rs.50 crore.
The minimum subscription should b e 90% of
the issued amount.
The company should have the prior approval of
SEBI.
Issuing company should have listing in
recognized stock exchanges in India.
The issue during a particular year should not
exceed 15% of the paid up capital plus free
reserves.
Who can invest in IDRs
Only qualified institutional investors are
allowed to invest.
Only RBI permitted NRI & foreign institutional
investors can invest.
The minimum investment is Rs. 2 lakh.
Indian company can also invest in IDRs but
should not exceed the investment limits fixed
by its board.
Thank you