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April 17, 2001 		Feedback  
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India eases overseas acquisition rules

India has liberalised rules to allow all overseas-listed domestic companies to make acquisitions, a government statement said on Tuesday.

"All companies which have made an American Depository Receipts or Global Depository Receipts issue earlier and are listed abroad would be entitled to the facility of overseas business acquisition through an ADR/GDR stock swap under the automatic route," the statement said.

The statement said the decision was in line with the finance minister's announcement in the 2001-02 (April-March) Budget that the restrictions would be removed. Prior to the Budget, only knowledge-based companies were allowed to make such acquisitions.

The Budget allowed Indian firms to use up to 100 per cent of their ADR proceeds to buy shares of foreign firms up to $100 million or 10 times their export earnings during the last financial year.

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