MCA vide Notification No. GSR.111(E) on 13th February, 2020 issued Companies (Issue of Global Depository Receipts) Amendment Rules, 2020 to further amend Companies (Issue of Global Depository Receipts) Rules, 2014 with the following amendments:
- In Rule 2
- “Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993” is substituted by “Depository Receipts Scheme,2014”
- In Sub-rule 2, a new clause (aa) is added which clarifies that “overseas depository” or “overseas depository bank” shall mean ‘foreign depository’ as defined in the Scheme.
- In Rule 5
- Sub-rule 1 is substituted by the following –
“(1) The depository receipts can be issued by way of 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.”
- In rule 5(3) & 9, “abroad” is omitted.
- A new provision is added in Rule 7 that the proceeds of issue of depository receipts now may be remitted in an International Financial Services Centre Banking Unit (IBU) and utilized in accordance with the instructions issued by the Reserve Bank of India from time to time.
The said Notification can be accessed through the following link:MCANotif_GSR.111(E)_13022020_Co.(Issue of GDR)Amendments,2020