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SEBI wants voting rights for ADR/GDR investors
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.
Updated on: May 25, 2010, 22:43:45 IST
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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.
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