Govt relaxes ADR/GDR rules for unlisted cos

Govt has relaxed rules for non-profit making unlisted companies that have accessed Foreign Currency Convertible Bonds, American and Global Depository Receipts.

The Government has relaxed rules for non-profit making unlisted companies that have accessed Foreign Currency Convertible Bonds, American and Global Depository Receipts.

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These unlisted companies were originally mandated to get listed within three years of accessing foreign markets or March 31, 2006.

Now this rule has been relaxed and these companies will have be listed within three years making profit.

But these companies, however, will not be allowed to fresh issues of FCCBs, ADR/GDRs without listing in domestic exchanges.

All other conditions contained in the amendment of August 31, 2005 including that for eligibility of issuer and eligibility of subscriber would continue to be applicable to all companies.

Government had amended the FCCB, ADR/GDRs issue schemes in August 2005 to allow unlisted unlisted companies to tap ADR/GDRs and FCCBs, following which several unlisted companies had raised funds from overseas markets.