In order to streamline and relax the process for IDR (Indian Depository Receipt) issuances, Securities and Exchange Board of India on Tuesday outlined a model listing agreement for IDRs of companies whose market regulators were signatories to the Multilateral Memorandum of Understanding of the International Organisation of Securities Commissions.
Under the modified agreement, the issuing company will have to treat all holders of IDRs on a par with shareholders in its home country. In matters regarding meetings, dividend declaration etc, a company will have to notify stock exchanges where its IDRs are traded at the same time it intimates other exchanges.
It will have to notify these exchanges seven days before the record date for corporate actions such as split of shares and rights and bonus issues.
The issuer of IDRs will also have to disclose particulars of increase in capital, re-issues of forfeited shares and other alterations to capital to stock exchanges by electronic filing.
