Firms can list GDRs in Gujarat’s IFSC, Ministry of Corporate Affairs notifies rules

New Delhi: Indian companies can list their global depository receipts at the International Financial Services Centre in Gujarat, with the Ministry of Corporate Affairs amending the norms to tap overseas funds as well as to promote IFSC. The MCA has notified the companies (issue of Global Depository Receipts) Rules, 2014, permitting listing of Global Depository Receipts (GDRs) at Gujarat International Finance Tec-City (GIFT).

The Ministry of Corporate Affairs (MCA) has notified the Companies (Issue of Global Depository Receipts) Rules, 2020 wherein new proviso in rule 7 has been inserted which states that the proceeds of issue of depository receipts may be remitted in an IFSC banking unit and utilized in accordance with the instructions issued by the EBI on time to time. “The depository receipts can be issued by way of a public offering or private placement or in any other manner prevalent in the concerned jurisdiction and may be listed or traded on the listing or trading platform in the concerned jurisdiction,” the ministry said in the amended rules. (IANS)

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