Section 3 in Permission to issue Global Depository Receipts/American Depository Receipts
3.
The company issuing GDRs/ADRs is also permitted -(i)to issue shares in the name of the depositary or its nominees and to place the share certificates in respect of the said shares in the physical custody of a Custodian in India against which the depositary will issue GDRs/ADRs outside India.(ii)to remit dividends through an Authorised Dealer as and when due subject to payment of Indian taxes as applicable.(iii)to issue rights or bonus shares that may accrue in respect of the GDRs/ADRs.(iv)to incur issue related expenses as approved by the Ministry of Finance, Government of India or up to the limits laid down in the relevant guidelines issued by the Government of India.(v)to pay the issue related expenses by way of deductions from the issue proceeds as approved by the Ministry of Finance, Government of India or up to the limits laid down in the relevant guidelines issued by the Government of India,(vi)to remit and pay for filing, listing, agency or other fees on ongoing basis in respect of any international stock exchange where the GDRs/ ADRs are listed.(vii)to maintain a Foreign Register of members, if so required.(viii)to open an account abroad to receive the subscription monies in foreign currency.(ix)to pay any foreign tax in the nature of sales or Value Added Tax in respect of services provided to the issuing company and reimburse any out of pocket expenses.(x)to repatriate the proceeds of the issue to India for deployment for purposes permitted by the Government of India. Pending repatriation of issue proceeds to India(a)to invest the funds as an interim arrangement on short term basis as deposits in foreign banks which are rated for short term obligations A1+ by Standard & Poor or P1 by Moody's or with the branches of Indian banks abroad or(b)to invest in treasury bills and other monetary instruments with maturities not exceeding one year or(c)to keep the funds as foreign currency deposits with Authorised Dealers and/or Public Financial Institutions in India or(d)to invest in Certificate of Deposit or other paper issued outside India by banks incorporated in India.
