Indian Depository Receipt

These are financial instrument that allows foreign

companies to mobilize funds from Indian capital
market.
IDRs are the depository receipts dominated by
Indian issued by the domestic depository receipt.
Represents interest in the share of non-Indian
companys equity.
Like equity shares, these are unsecured instruments
& negotiable from one to another investors.
It provides chance to Indian investors to hold equity
shares of foreign companys.
Who can invest?
Any person who is resident in India as defined
under FEMA.
NRIs.
SEBI registered foreign institutional investor
including their sub accounts.
Intermediaries involved in issuance
of IDR
Overseas custodian
Domestic depository
Merchant banker
Registrar and transfer agent
Eligibility criteria
As per the companies IDR rules

Criteria Requirements
Capital Pre issue paid up capital and free reserve are at least US$ 50
million.
Market
capitalization
Minimum average market capitalization (during the last 3
years) in its parent country of at least US$ 100 million.
Operation history Continuous trading record or history on a stock exchange in
its parent country at least 3 immediately preceding years.
Track record of
distributable
profits
Track record of distributable profits in terms of section 205
of the companies act. 1956 for at least 3 out of immediately
preceding 5 years.
Other requirements Fulfil such other eligibility criteria as may be laid down by
SEBI from time to time in this behalf.
Allocation of the issues
Minimum 50% of the issue should be allotted
qualified institutional buyers (QIB).
30% of the issue should be offered to retail
individual investors (RIB) including
employees.
Balance 20% to be appointed between Non-
institutional investors (NII).

Issue Size- issue shall not be less then 50crore.

Minimum application amount- Shall be 20,000.

Extent of issue- the no. of underlying issue shares
offered in a financial year through IDR offering shall
not exceeds 25% of the post issue no. of equity share
of the company.

Limits of investment
RII- Minimum of 20,000 of and maximum of
1,00,000.

NII- Above 1,00,000 and up to the issue size

QIB-Above 1,00,000 and up to the issue size.

Procedures
Pre- listing
Offering process
Eligibility criteria & public offering
Listing on stock Exchange
Benefits to the key stackholders
Issuing companies.
Investors.
Employees.
Regulators.