Economic Survey 2013-14: Govt to come out with simplified norms for DRs
   
Sponsored By

Economic Survey 2013-14: Govt to come out with simplified norms for DRs

Economic Survey 2013-14: Govt to come out with simplified norms for DRs

Last Updated: Wednesday, July 9, 2014, 19:49
New Delhi: The government Wednesday said it will come out with simplified norms for Depository Receipts after making necessary amendments in tax regulations.

Depository Receipts (DRs) are used by companies to raise capital from overseas investors.

The Centre has accepted the Sahoo panel report which reviewed the Depository Receipts schemes framed in 1993.

"The government has accepted the report and the new scheme suggested by the Committee would be notified at later stage after the necessary tax related amendments are made," says the Economic Survey for 2013-14.

The committee suggested that companies (listed or unlisted) should be allowed to issue Depository Receipts against any underlying securities, which may be equity or debt.

It also recommended that DRs should be counted as "public shareholding if they have attached voting rights for the holders".

It had further suggested that DRs can be issued for raising funds by issuing new shares or against the existing equity.

Depository Receipts are receipts denominated in foreign currency created by a depository in the country of listing.

There are two types of DRs - Global Depository Receipts (GDR) and American Depository Receipts (ADR).

The Finance Ministry had in September 2013 set up a committee under the chairmanship of M S Sahoo, Secretary, Institute of Company Secretaries of India, to review the rules governing foreign currency convertible bonds and depository receipt mechanism scheme.


PTI

First Published: Wednesday, July 9, 2014, 19:49



Budget Impact

Pharma

Pharma

Real Estate

Real Estate

Agriculture

Agriculture

Power

Power

Tourism

Tourism

MSME

MSME

More »

Q & A With FM

Measures announced in Budget will expand the economy: Arun Jaitley

Rail Budget/Economic Survey

Rail Budget
Economic Survey

Videos

Retrospective tax amendment to be undertaken with extreme caution: Arun Jaitley

 
Union Budget growth oriented, says Finance Minister Arun Jaitley   Union Budget 2014-15: Income Tax exemption limit raised to Rs 2.5 lakh

Opinion Poll

Will AAP`s victory force Modi government to clamp down on reforms?
 Yes     No     Maybe
 
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved