Sebi simplifies listing for IDRs

The Securities and Exchange Board of India (Sebi) has simplified the listing agreement for Indian Depository Receipts (IDRs). The issuer is allowed to follow the home country requirements provided equitable treatment is given to the IDR holders vis-a-vis holders of equity shares,Sebi said.

“In order to reduce the additional regulatory or cost burden to the issuers,it has been decided to simplify the listing requirements applicable to the issuers from the countries which are the signatories of Multilateral Memorandum of Understanding (MMOU) of International Organization of Securities Commissions (IOSCO),” the Indian regulator said on its website.

Sebi has drafted a model listing agreement for IDR issuers with registered office in a country where the securities markets regulator is a signatory to MMOU of IOSCO,it said.

“For all corporate actions (except those which are not permitted by Indian laws),it will treat holders of IDRs,in a manner equitable with the holders of its equity shares in the home country,” it said. “If its equity shares or other securities representing equity shares are also listed on the exchanges in countries other than its home country ,it should ensure that IDR holders are treated in a manner equitable with the holders of such securities,” Sebi said.