Você está na página 1de 63

FOREIGN DIRECT

INVESTMENT ,EURO
ISSUE &
DEPOSITORY
RECEIPTS,GDR/ADR

ANKIT GUPTA
ANKIT BAWA
NIKHIL JOSHI
PANKAJ BHARDWAJ
ISHA SACHDEVA
PGDM- IVth Semester
INTRODUCTION
qIndia opened its stock market to foreign investors in September
1992.
qsince 1993,received portfolio investment from foreigners in the
form FII
qIn order to trade in Indian equity market foreign corporation need
to registered with SEBI as FII.
FOREIGN INSTITUTIONAL
INVESTOR
A foreign Institutional Investor (an "FII") as an institution

established or incorporated outside India which proposes to make


investment in India in securities of companies incorporated in India
(“Indian Companies”)
q


FOREIGN INSTITUTIONAL
INVESTOR
An investor or investment fund that is from or registered in a
country outside of the one in which it is currently investing.
Institutional investors include

Øhedge funds,
ØInsurance companies,
ØPension funds and mutual funds.
ENTITIES /FUNDS ELIGIBLE TO GET
REGISTERED AS FII:
ØPension Funds
ØMutual Funds
ØInsurance Companies
ØInvestment Trusts
ØBanks
ØEndowments
ØFoundations
ØCharitable Trusts/Charitable Societies
REGISTRATION PROCEDURE OF
FOREIGN INSTITUTIONAL INVESTOR
 As per Regulation 6 of SEBI (FII) Regulations,1995
ØThe applicant should be regulated by an appropriate
foreign regulatory authority
ØThe applicant is required to have the permission
under the provisions of the Foreign Exchange
Management Act, 1999from the Reserve Bank
of India.
ØApplicant must be legally permitted to invest
insecurities outside the country or its in-
corporation /establishment.
Ø

Cont…..
ØThe applicant must be a "fit and proper" person.
ØThe applicant has to appoint a local custodian and
enter into an agreement with the custodian.
 The fees for registration:
Ø US$ 5,000 for an FII account
Ø US$ 1,000 for each sub account.
Ø SEBI targets a timeline of 10 to 12 days for
processing of FII applications. 
ØValid for 5 years.
 

 


WHO CAN BE REGISTERED AS AN FII’s
?

ØPension Funds
ØMutual Funds
ØInsurance Companies
ØInvestment Trusts
ØBanks
ØEndowments
ØFoundations
ØCharitable Trusts/
Charitable
Societies
FII’s INVESTMENT IN LAST 10
YEARS
FII’s as major cause of market crash
(Jan 21 to Jan 29 2008)

The Indian capital markets have been left reeling under the


impact of liquidity crunch  caused by multiple factors

It began with two mega issues of reliance power and future


capital holdings, which drew out huge amounts of money
from the market

FIIs withdraw from the capital market with more


than Rs 10000 crores.
Definition of FDI
Foreign direct investment is that investment , which is
used to made the business interests of the investor in
a company, which is in a different nation distinct from
the investor’s country of origin.
The parent enterprise through its foreign direct
investment effort seeks to exercise substantial
‘Control’ over the foreign affiliate company.
 Exp. – An American company taking a majority stake
in a company in India.
FOREIGN DIRECT INVESTMENT
A foreign direct investor may be classified in any
sector of the economy and could be any one of the
following
an individual;

a group of related individuals;

an incorporated or unincorporated entity

a public company or private company

a group of related enterprises

a government body

an estate (law), trust or other societal organization; or

any combination of the above.


Why is FDI important ?
Firms want a presence in foreign markets
Firms want control over growth of these foreign

markets
To gain first mover advantage

To ward off competitors

To determine locations, advertising and other related

strategic decisions in the firm’s interest.



Why India?
Liberal, largest democracy, Political stability.
Second largest emerging market (US$ 2.4 trillion)

Skilled and competitive labors force

Highest rates of return on investment

Second largest group of software developers after the

U.S.
Lists 6,500 companies on Bombay Stock

Low costs & Tax exemptions in SEZ

Has a middle class estimated at 300 million out of a

total population of 1 billion


Growth over the past few years averaging 8%
SHARE OF TOP INVESTING
COUNTRIES –FDI INFLOWS (US$ Mn.)
Rank Country Total 2000 to % of total of all
2009 countries
1. Mauritius 39,379 44
2. Singapore 8,071 9
3. U.S.A 6,508 7
4. U.K 5,289 6
5. Netherlands 3,701 4
6. Germany 2,379 3
7. France 1,233 1
Differences….
FDI and FII
ØFDI is when a foreign company brings capital into a
company or economy to set up a production or some
other facility
 FII is when a foreign company buys equity in any
company through stock market.
ØFDI gives some CONTROL in operation of foreign
company to the foreign company.
 FII does not give any control in operation of foreign
company.
ØFDI brings long term capital.
 FII brings short term capital.
Ø
Ø
ØFDI involves in direct production activity and is long
term in nature.
 FII is mostly the short term investment mostly in

financial market.
ØFDI enables a degree of control in the company.
 FII does not involve in degree of control in the
company.
,EXTERNAL COMMERCIAL
BORROWING,ASIAN DEVELOPMENT
BANK,IBRD
EXTERNAL COMMERCIAL BORROWING
 ECB (External Commercial Borrowings) is an instrument
used in India to facilitate the access to foreign money by
Indian corporations and PSUs (Public Sector Undertakings).
ECBs include commercial bank loans, buyers' credit,
suppliers' credit, securitized instruments such as Floating
Rate Notes and Fixed Rate Bonds etc., credit from
official export credit agencies and commercial borrowings
from the private sector window of Multilateral Financial
Institutions 
External Commercial Borrowings (ECBs) include bank

 loans, suppliers' and buyers' credits, fixed and


 floating rate bonds (without convertibility) and
 borrowings from private sector windows of
 multilateral Financial Institutions such as
 International Finance Corporation. Euro-issues
 include Euro-convertible bonds and GDRs. 


FOREIGN DIRECT INVESTMENT-
• An outward-bound FDI is backed by the government against
all types of associated risks. This form of FDI is subject to
tax incentives as well as disincentives of various forms.
• Different economic factors encourage inward FDIs. These
include interest loans, tax breaks, grants, subsidies, and the
removal of restrictions and limitations.
 FOREIGN PORTFOLIO INVESTMENT-
• Foreign portfolio investment is the entry of funds into a
country where foreigners make purchases in the
country’s stock and bond markets, sometimes
for speculation.


 It is a usually short term investment (sometimes less than a year, or
with involvement in the management of the company), as opposed
to the longer term Foreign Direct Investment partnership (possibly
through joint venture), involving transfer of technology and
"know-how".
 FOREIGN VENTURE CAPITAL INVESTOR:-

FVCIs (Foreign Venture Capital Investors) registered with SEBI are

allowed to invest in units of venture capital funds any limit. FVCI


investment in equity of Indian venture capital
undertakings is also allowed. The limit for such investments would

be based on the sectoral limits under the FDI policy



 INVESTMENT BY NRIs IN IMMOVABLE
PROPERTIES:
 The NRIs are permitted to freely acquire immoveable property
(other than agricultural land, plantations and farmhouses). There
are no restrictions regarding the number of such properties to be
acquired. The only restriction is that where the property is acquired
out of inward remittances, the repatriation is restricted to principal
amount for two residential properties. There is no such restriction
in respect of commercial property. NRIs are also permitted to avail
of housing loans for acquiring property in India and repayment of
such loans by close relatives is also permitted.

MULTILATERAL FINANCIAL
INSTITUTION
1.IBRD-

WORLD BANK :
SHORT INTRODUCTION
ØNAME : WORLD BANK
ØH.Q. : WASHINGTON D.C.
ØESTD. : 27 DEC 1945
ØMEMBERS : 185 COUNTRIES
ØCURRENT PRESIDENT : ROBERT B. ZOELLICK.
ØSTAFF : 10000 IN 100 COUNRIES
ØAUTHORIZED CAPITAL : $184 BILLION
ØFINANCIAL SOURCES : BORROWING ON
INTERNATIONAL MARKET


WORKING GROUPS OF WORLD
BANK
ØInternational Bank for Reconstruction and Development (IBRD)
ØInternational Development Association (IDA)
ØInternational Finance Corporation (IFC)
ØMultilateral Investment Guarantee Agency (MIGA)
ØInternational Centre for Settlement of Investment Disputes (ICSID)


FUNCTIONS
World Bank provides technical and financial assistance to
underdeveloped nations for development schemes like building
roads, schools, hospitals, etc. The main aim is to eliminate poverty
from the world.
The World Bank collaborates with numerous other partners and

multilateral organizations, including the World Health Organization


(WHO) and the Food and Agriculture Organization (FAO), to
realize the most far-reaching results possible.

2. ASIAN DEVELOPMENT BANK:-

 The Asian Development Bank (ADB) is a multilateral


development finance institution whose mission is to reduce poverty
in the Asia Pacific region.
 The ADB was founded in 1966 with the goal of eradicating
poverty in the region. With over 1.9 billion people living on less
than $2 a day in Asia, the institution has a formidable challenge. 

FUNCTIONS
It plays the following functions for countries in the Asia Pacific
region:
Provides loans and equity investments to its developing member

countries (DMCs)
Provides technical assistance for the planning and execution of

development projects and programs and for advisory services


Promotes and facilitates investment of public and private capital for

development


 3.INTERNAIONAL MONETARY FUND (IMF):-


The International Monetary Fund was conceived in July 1944. The

International Monetary Fund (IMF) is an organization of 187


countries, working to foster global monetary cooperation, secure
financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty
around the world.
WHAT IS DEPOSITORY
RECEIPTS ?

A DR is a type of negotiable (transferable) financial security traded


on a local stock exchange but represents a security, usually in the form
of equity, issued by a foreign, publicly-listed company. The DR,
which is a physical certificate, allows investors to hold shares in
equity of other countries.
The other most common type of DRs are European DRs and
International DRs. ADRs are typically traded on a US national stock
exchange, such as the New York Stock Exchange (NYSE) or the
American Stock Exchange, while GDRs are commonly listed on
European stock exchanges such as the London Stock Exchange. Both
ADRs and GDRs are usually denominated in US dollars, but can also
be denominated in Euros.
The Depository Receipts may be traded freely on an exchange or an

over the counter market.



INDIAN DEPOSITORY RECEIPTS
IDRs are transferable securities to be listed on Indian stock exchanges
in the form of depository receipts created by a Domestic Depository in
India against the underlying equity shares of the issuing company
which is incorporated outside India.

HOW DO DRs WORK ?
DRs are created when a foreign company wishes to list its securities
on another country’s stock exchange. For this, the issuing company
has to fulfill the listing criteria for DRs in the other country. Before
creating DRs, the shares of the foreign company, which the DRs
represent, are delivered and deposited with the custodian bank of the
depository creating the DR. Once the custodial bank receives the
delivery of shares, the depository creates and issues the DR to
investors in the country where the DRs are listed. These DRs are then
listed and traded in the local stock exchanges of the other country.
PARTIES INVOLVED IN DEPOSITOR
RECEIPTS
Each of the above parties have various roles to play and must
coordinate with each other effectively to ensure that the DR issue
process is carried out successfully

Issuer Depository

At the time of offering…


sors §Provide advice/ perspective on type of program, exchange or market on which to list or
d to all questions
§Appoint custodian
§Coordinate with all parties for timely launch
§Coordinate with legal counsel on Deposit
ices of dividends, rights offerings
§Agreement and other
and securities lawcorporate
matters, actions, including meeting notices
as appropriate
and international regulations,
§Announce includingtodisclosure
DR program market and reporting
elations plan Ongoing…
hrough PRs §Coordinate with issuer to announce and process corporate actions such as dividends an
ors holding company DRs Issuer to maintain active DR program
§Work with
CONT.
Legal Counsel I-Banks / Underwriters

offering…
pricing
ew and marketing
(depositary of offering,
counsel) type
offering of program
circular and to launch and
interact withexchange or market on which to list o
authorities
nt agent or underwriter in offering
epositary bank’s counsel)
hows with management/ introduce issuer to institutional and other investors
regulatory authorities and exchanges (issuer and placement agent counsels)
d dealers and co-underwriters

aws, rules
rough andreports/
research regulations
promoteand perfect
DRs any securities law exemptions
to investors
henever required
shows, invest or meetings, investors to target
CONT..
Custodian Investor Relation Firm

of offering…
l shares in issuer’s home country and confirm receipt

in custody for the account of depositary


deliver shares in accordance with depositary’s instructions

offering…
erm plan to raise awareness of issuer’s program in markets in which GDRs will trade
unications plan and information materials for launch activities (road show and presentations to investo
Auditors
h issuer’s advertising and public relations teams on specific program plans to support and develop com
ork with the issuer to maintain visibility and invest or knowledge in the capital markets
r meetings for issuer with investors to keep them informed of developments/ results
ime of offering…
e company’s accounts for insertion into the prospectus
prospectus and interact with authorities
g…
nd prepare accounts
DR ISSUANCE PROCESS
Investor contacts broker and requests the
purchase of shares of a DR issuer Investor
company. If existing DRs of that company
are not available, the issuance process
begins. 7 1
To issue new DRs, the broker contacts a
local broker in the issuer’s home market.
2 Local
The local broker purchases ordinary shares DR Broker Broker
on an exchange in the local market.
Ordinary shares are deposited with a local 3
custodian.
The local custodian instructs the depositary
6 Local
to issue DRs that represent the shares Stock
received. Market
The depositary issues DRs and delivers 4
them in physical form or book entry form.
The broker delivers DRs to the investor or
credits the investor’s account. 5 Local
Depository Custodian
DR CANCELLATION PROCESS
The investor instructs the broker to
Investor
cancel DRs.
1
The broker delivers the DRs to the
depositary for cancellation.
DR Broker
The depositary cancels the DRs and
instructs the local custodian to release 2
and deliver the underlying shares to
the seller’s broker in the issuer’s home Depository
market.
3
The local custodian delivers the
underlying ordinary shares as
Local
instructed to the local broker. The local Custodian
broker safe keeps the ordinary shares
or delivers them to or on behalf of the 4
new investor.
Local
Broker
STRUCTURE OF DR MECHANISM

India
underlying shares
ISSUER COMPANY CUSTODIAN

OVERSEAS LISTED

DEPOSITORY EUROPEAN or U . S .
STOCK EXCHANGE
MONEY DIVIDEND
CLEARING HOUSE

OVERSEAS INVESTORS EUROCLEAR / CEDEL / DEPOSITORY TRUST COMPANY


BENEFITS OF DEPOSITORY
Benefits to Issuer
RECEIPTS
Offer a new avenue for raising equity capital outside the issuer’s home market

Broaden and diversify a company’s investor base

Establish/increase total global issuer liquidity by attracting new investors

Enhance a company’s visibility, status and profile internationally among institutional


investors

Develop and/or increase research coverage outside the home market

Get an international valuation as the Company is valued alongside its peer group

Adjust share price levels to those of peers through DR Ratio

Facilitate M&A activity through use as acquisition currency

Expand opportunity to increase local share price as a result of global demand/trading


BENEFITS OF DEPOSITORY
RECEIPTS----CONTD…
Benefits to Investors
Facilitate diversification into securities of foreign issuers

Represent a way to provide international exposure for institutional investors (mutual


funds, pension funds) despite restrictions against investing in certain countries or in
foreign investment instruments

Easier to purchase and to hold than the issuer’s underlying ordinary shares

Trade easily and conveniently in US dollars and settle through established


clearinghouses

Ability to acquire the underlying securities directly upon cancellation (two-way


fungibility)

Create accessibility of price, trading information and research

Provide dividend payments in US dollars and corporate action (meetings of


shareholders, rights offerings, exchange offers, tender offers, etc.) notifications in
English
STATUTORY APPROVAL
EURO ISSUES
A scheme has been initiated during 1992 to allow the Indian
Corporate Sector to have access to the Global Capital markets
through issue of Foreign Currency Convertible Bonds
(FCCBs)/Equity Shares under the Global Depository Mechanism.
Under this scheme, companies with consistent track record of
good performance (financial or otherwise) for minimum period of
three years can have access to international capital market.

The three year track record requirement has been relaxed for
companies making Euro issues for financing projects in the
infrastructure sector like power generation, telecommunication,
petroleum exploration and refining, ports, airports and roads.
Indian corporates have successfully launched 91 Euro issues in the
international market.


FINANCIAL INSTRUMENTS

• EURO CREDITS OR EUROLOANS


• EURODEPOSITS
• FOREIGN BONDS
• EUROBONDS
• EURO COMMERCIAL PAPER
• EURO CERTIFICATE OF DEPOSITS
• EURO DOLLARS
• NOTE ISSUANCE FACILITY
• FLOATING RATE NOTES

EURO CREDIT

• These are the loans by banks in international markets.


Credit extended in a currency outside the jurisdiction
of the central bank of the bank extending the credit.

• For example, an American bank may make a loan


denominated in Japanese yen. The term has nothing to
do with the euro ; and the prefix "euro-" is used more
generally to refer to deposits outside the jurisdiction of
the local central bank. e.g. "euro ruble."

• Euro credit loans are usually large and long-term.

• They have emerged as an important source of external


finance for many borrowers.
EURO BOND
A bond that is
• Underwritten by an international syndicate,
• issued simultaneously to investors in a number of
countries, and
• issued outside the jurisdiction of any single country.
 Eurobonds are often bearer ,unsecured bonds & they are

usually listed on London or Luxemburg exchange. These


bonds give the lenders the right to request repayment in
one or two or more currencies.
Types are-

• Euro callable bonds, euro-convertible bonds, fixed-rate


bonds, floating rate bonds.
 Eurobonds are named after the currency they are
denominated in. For example, Euro yen and Eurodollar
bonds are denominated in Japanese yen and American
dollars respectively
FLOATING RATE NOTES
• Floating rate notes (FRNs) are bonds that have a
variable coupon, equal to a money market reference
rate, like LIBOR or federal funds rate, plus a spread.
The spread is a rate that remains constant. Almost all
FRNs have quarterly coupons, i.e. they pay out interest
every three months, though counter examples do exist.

• These protect investors against a rise in interest rates


(which have an inverse relationship with bond prices),
but also carry lower yields than fixed notes of the same
maturity. 

FOREIGN BOND
• A bond that is issued in a domestic market by a foreign
entity, in the domestic market's currency.
• They are also bearer, unsecured bonds & listed on the
domestic exchanges.
• Foreign bonds are regulated by the domestic market
authorities .
• Maturity of five years.

Since investors in foreign bonds are usually the


residents of the domestic country, investors find them
attractive because they can add foreign content to
their portfolios without the added exchange rate
exposure.

Types of foreign bonds include bulldog bonds, yankee


bonds, and samurai bonds.
NOTE ISSUANCE FACILITY
• It is a funding arrangement which combines the
features of a syndicated bank loan & a FRN issue.it
aims at simultaneously satisfying the investor
preference for short term commitments, & the
borrower need for medium-term funds.

• The user of NIF obtains medium-term funding by


offering short-term notes called euro notes directly
to the investors.

• Note issuance facilities are useful in reducing risk


and costs for both the borrower and the lender.

EURO DEPOSITS
• The equivalent of a money market rate on cash
deposits made in the euro currency.
• Euro deposit rates will usually be quoted as "money
market euro deposit rates" and are typically only
offered to U.S. investors with minimum
investments of greater than 10,000 euros.
• Euro deposits pay a floating interest rate (like
a money market account) and offer the chance for
capital appreciation if the euro appreciates against
the investor's home currency.
• Euro deposit rates are based on the euro interbank
offer rate, which is set by the European Central
Bank.

EURO DOLLARS
Eurodollars are deposits denominated in U.S. dollars
at banks outside the United States, and thus are not
under the jurisdiction of the Federal Reserve.
Consequently, such deposits are subject to much
less regulation than similar deposits within the U.S.,
allowing for higher margins.

EURO COMMERCIAL PAPER
• An unsecured, short-term loan issued by a bank
or corporation in the international money market,
denominated in a currency that differs from the
corporation's domestic currency.
• Like other commercial papers, euro commercial papers
are rarely for a term longer than a few months and they
are usually issued at a discount.
• Corporations issue euro commercial papers in order to
tap into the international money markets for their
financing

For example, if a U.S. corporation issues a short-


term bond denominated in Canadian dollars to finance
its inventory through the international money market, it
has issued euro commercial paper.

EURO CDs
• Euro CDs are issued outside a country but are
denominated in that country's currency.
• They are subject to the regulations of the country in
which they are issued. For this reason, Euro CDs have
historically offered slightly higher yields.
• London is the main issuing Centre.
• One can purchase euro certificates of deposit (CD) from
a bank. However, if purchase a euro CD from a bank
outside the United States, the U.S. Federal Deposit
Insurance Corporation (FDIC) does not protect it.


GDR’S/ADR’S
Definition:

 A GDR/ADR means any instrument in the form


of depository receipt or certificate created by a
depositor outside India and issued to non-resident
investors against the issue of ordinary shares of the
company.
 The issue of GDR’s/ADR’s are governed by the
provisions of the issue of foreign currency
convertible bonds and ordinary shares scheme 1993.
Features
1.Track record: The issuer company seeking permission for raising
foreign funds by issue of GDR’s/ADR’s would be required to
have a consistent track record of good performance for a
period of at least 3 years.
2.GDS’s/ADS’s: A GSR or ADR may evidence 1 or more global
depository shares or american depository shares respectively
and each gds or ads represents one underlying share of the
issuer company.
3.Underlying shares: These shares are issued by the issuer
company to the depository, in whose name the shares are
registered.
4.Dnomination: GDR’s/ADR’s are denominated in dollars or in
some other freely convertible foreign currency and gives
holder the right to get equity shares of the issuer company
against the GDR/ADR as per the terms of the offer.
5.Listing: Issued abroad and is listed and traded on a foreign stock
exchange.
6.Settlement: Usually settled on a book entry basis through the
system of Euroclear or Cedel in Europe and the depository
trust company in the U.S.
7.Lock-In: No lock-in period.
8.Voting: GDR/ADR holders are not entitled to any voting rights.
9.Transfer: GDR’s/ADR’s may be purchased, possessed and are
freely transferable by the non-resident.
10.Redemption and sale: Holder has an option to redeem the
GDR’s/ADR’s into the equity shares underlying it.
11.Listing of underlying shares: once redemption takes place the
underlying shares are listed and traded on a domestic stock
exchange.
12.
13.
Advantages to the investors
Designated in foreign currency which is more
acceptable to global investors.
Holders need not be registered with SEBI.

Identity of holders is kept confidential since they are

freely transferable.
Quick settlement of GDR’s/ADR’s due to existence of

international systems like, Euroclear and cedel in


Europe and the depository trust company in U.S.
Advantages to the issuer company
 Issuer co. collects the issue proceeds in foreign
currency and is thus able to utilize the same for
meeting the foreign exchange component of project
cost, repayment of foreign currency loans, etc.
 Large amounts can be raised in the global market.
 The issue proceeds may be retained outside India and
used for “approved end-uses” as and when the issuer
co. requires.
 Dividend payable by the issuer company is in rupees
only.
 Possible for the issuer company to float more than
one foreign equity issue in a year.

 There is certainty of raising new capital and the issue
terms are much better than those which can be obtained
in the local market.
 Owing to the restrictive voting rights in the depository
agreement, control is not affected immediately.
 Issuer co. can use up to 25% of the total sale proceeds for
general corporate restructuring, including working
capital requirements.
 Banks, financial institutions, and non banking finance
company can raise funds through equity issues abroad
and use such funds for domestic lending.
 Issuer co. may retain the GDR/ADR proceeds abroad or
remit the funds into India in anticipation of the use of
funds for “approved end-uses”.
 Issuer co. making a GDR/ADR issue to fund export
projects or infrastructure projects need not to have past
track record of financial services.
Main agreements to be executed and
related documents
Prospectus
Subscription agreement between the investors and the

underwriters.
Underwriting agreements between the issuer company and

the underwriters\custodian agreement between the


depository and the custodian.
Depository agreement between the issuer company and

the depository.
Listing agreement with the overseas stock exchange filed

by the issuer company


Domestic listing agreement filed by the issuer company

Lock up agreement
Procedural requirements for a
GDR/ADR issue
ØU.S. generally accepted accounting
principles(GAAP):
 Companies planning an issue of securities in the U.S.
would have t ensure that their accounts for the past three yeas
are reconciled with U.S. GAAP.
ØPreliminary meeting: The issuer company generally
holds preliminary discussions and meets with different
global merchant/investment bankers, legal advisors,
auditors, printers and other intermediaries before deciding to
float a GDR/ADR issue.
ØAuthorization by the board of directors: The
issuer company is required to pass a board resolution
approving the proposed GDR/ADR issue.
ØOrganizational meetings:
 The issuer company formally appoints the lead
manager, co-managers, underwriters to market the issue
organize the road shows, printers, legal advisors, depository,
the custodian and the overseas bankers only after the
application is filed with the Government of India, ministry of
finance, department of economic affairs.
ØLegal and accounting due diligence on the
issuer company
ØAuthorization by the shareholders
ØStatutory approvals
ØApplication for listing the additional shares
on an Indian stock exchange
ØFilings
Ø