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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Framework for issue of Depository Receipts - Clarifications

18-Dec-2020 | SEBI/HO/MRD2/DCAP/CIR/P/2020/243

SEBI vide its Circular No. SEBI/HO/MRD/DOP1/CIR/P/2019/106 dated October 10, 2019 laid down a framework for the issue of Depository Receipts. Based on representations received from market participants, Para 2.15 of the abovementioned Circular has been revised as under:- Para 2.15: Permissible holder means a holder of DR, including its Beneficial Owner(s), satisfying the following conditions: (a)who is not a person resident in India; (b)who is not a Non-Resident Indian (NRI) Provided that the restriction under this Clause shall not apply in case of issue of DRs to NRIs, pursuant to share-based employee benefit schemes which are implemented by a company in terms of SEBI (Share Based Employee Benefits) Regulations 2014; Provided further that the restriction under this Clause shall also not apply in case of issue of DRs by the company to NRIs pursuant to a bonus issue or a rights issue. After Para 2.12, the following para is also inserted as Para 2.12A: 2.12A. The onus of identification of NRIs holders, who are issued DRs in terms of employee benefits scheme, would lie with the listed company. The listed company shall provide the information of such NRI DR holders to the designated depository for the purpose of monitoring limits

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