Capital Markets watchdog Sebi on Friday gave certain relaxations to non-resident Indians in respect of holding of depository receipts (DRs) issued by India-listed companies.
Non-Resident Indians (NRI) can now hold depository receipts issued by the company under the employee stock option schemes, bonus issue and rights issue, the regulator said.
Last year, the Sebi barred NRIs from buying DRs issued by India-listed companies. This restriction will not apply in the case of issue of DRs to NRIs, pursuant to share-based employee benefit schemes that are implemented by a company in terms of Sebi (Share Based Employee Benefits) rules, the regulator said in a circular on Friday. Moreover, the restriction would also not apply in the case of issue of DRs by the company to NRIs following a bonus issue or a rights issue, it added.
"Except as permitted under the provisos above, NRIs shall neither subscribe to any further issue of DRs nor make any further acquisition of DRs (including of DRs issued prior to October 10, 2019)," Sebi clarified.
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