The Companies (Issue of Global Depository Receipts) Amendment Rules, 2020

Feb 14, 2020 | by Avantis RegTech Legal Research Team


The Ministry of Corporate Affairs (MCA) on February 13, 2020, issues the Companies (Issue of Global Depository Receipts) Amendment Rules, 2020 to further amend the Companies (Issue of Global Depository Receipts) Rules, 2014. 

The followings are the amendments made under the Companies (Issue of Global Depository Receipts) Rules, 2014:-

 A company may issue depository receipts provided it is eligible to do so in terms of the Depository Receipts Scheme,2014 and relevant provisions of the Foreign Exchange Management Rules and Regulations.

 Rule 5(1) related to “Manner and form of depository receipts” stands substituted stating that the depository receipts can be issued by way of public offering or private placement or in any other manner prevalent in the concerned jurisdiction and may be listed or traded on the listing or trading platform in the concerned jurisdiction.

 In Rule 7 related to “Proceeds of issue”, a proviso has been inserted, namely:-

“Provided that proceeds of issue of depository receipts may be remitted in an International Financial Services Centre Banking Unit (IBU) and utilised in accordance with the instructions issued by the Reserve Bank of India from time to time.”

These Rules shall come into force on the date of their publication in the Official Gazette.


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