Framework for issue of Depository Receipts


 Framework for issue of Depository Receipts

1.The framework for issuance of Depository Receipts (‘DRs’) by a Listed     Company was notified by SEBI vide Circular dated October 10, 2019.

  1. The said Circular, inter-alia, provided that a Listed company shall be permitted to issue permissible securities or transfer Permissible Securities of existing holders, for the purpose of issue of DRs, only in Permissible Jurisdictions and said DRs shall be listed on any of the specified International Exchange(s) of the Permissible Jurisdiction.
  1. The Circular also provided that ‘Permissible Jurisdiction’ shall mean jurisdictions as may be notified by the Central Government from time to time, pursuant to notification no. G.S.R.  669(E) dated September 18, 2019 in respect of sub-rule 1 of rule 9 of Prevention  of  Money-Laundering  (Maintenance  of  Records)  Rules,  2005,  and ‘International Exchanges’ shall mean exchanges as may be notified by SEBI from time to time.’
  1. In this regard, the Central Government vide notification dated November 28, 2019, has notified the list of Permissible Jurisdictions in pursuance of notification dated September 18, 2019. Accordingly, for the purpose of Para 2.7 of the abovementioned Circular dated October 10, 2019, a list of Permissible Jurisdictions and International Exchange(s) is placed at Annexure A


  1. Stock Exchanges and Depositories are advised to:
  1. a)  make necessary amendments to the relevant bye-laws, rules and regulations for

the implementation of the above circular; and

  1. b)  bring  the  provisions  of  this  circular  to  the  notice  of  the  issuers,  domestic

custodians and also to disseminate the same on the website.

6.This circular is being issued in exercise of powers conferred under Section 11(1) of

the Securities and Exchange Board of India Act, 1992, to protect the interests of

investors  in  securities  and  to  promote  the  development  of,  and  to  regulate  the

securities market

Annexure A

List of Permissible Jurisdictions and International Exchanges

  1. United States of America – NASDAQ, NYSE
  2. Japan – Tokyo Stock Exchange
  3. South Korea – Korea Exchange Inc.
  4. United Kingdom excluding British Overseas Territories- London Stock Exchange
  5. France – Euronext Paris
  6. Germany – Frankfurt Stock Exchange
  7. Canada – Toronto Stock Exchange
  8. International Financial Services Centre in India – India International Exchange,

NSE International Exchange