SEBI wants voting rights for ADR/GDR investors | business | Hindustan Times
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SEBI wants voting rights for ADR/GDR investors

business Updated: May 25, 2010 22:43 IST

PTI
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The Securities and Exchange Board of India (SEBI) wants to end the practice of placing restrictive clauses by companies, which strip their American depository receipts (ADR)/gross depository receipts (GDR) investors of voting rights.

The SEBI board meeting last week had deliberated on the need to remove obstacles to bring the holders of ADRs/GDRs at par with domestic investors.

If implemented, it will trigger the takeover regulations even when the holders of ADRs/GDRs exceed certain percentage of stake or when their votes are used by the management to cross the threshold.

The move requires approvals from the finance ministry and the Reserve Bank of India.