The guidelines also clearly state that the IDR issuer would have to fulfil the eligibility criteria laid down by the SEBI and that it should obtain prior approval of the SEBI to make any issue.
The SEBI has prescribed its own set of norms which would also have to be adhered to by the IDR issuer.
- The first ever issue of IDRs was by Standard Chartered Bank on May 28, 2010. Of 240 million IDRs sold, 36 million IDRs were placed with anchor investors. Each IDR represent one-tenth of Stan Chart's UK listed stock (10IDRs = 1 share)
Eligibility for Issue of IDRs No issuer shall make an issue IDRs unless
- it fulfills the eligibility criteria as specified in Rule 4 of the IDR Rules;
- it is listed in its home country;
- it has not been prohibited to ...