Issue of Global Depository Receipt Rules

The Companies (Issue of Global Depository Receipts) Rules, 2014 provide a comprehensive framework for Indian companies wishing to raise capital in international markets through Global Depository Receipts (GDRs).

These provisions define key concepts, set eligibility requirements, and outline the conditions under which GDRs may be issued.

They also detail the form and manner of issuing depository receipts, specify how voting rights are exercised, and regulate the use of proceeds received from such issues.

The framework further clarifies the treatment of GDRs issued before the rules came into force and identifies which provisions of the Companies Act do not apply to GDR-related transactions.