204:(DRHP), which will be examined by SEBI. The general body of investors will get a chance to read and review the DRHP as it is a public document, available on the websites of SEBI and the book running lead managers. After SEBI gives its clearance, the company sets the issue dates and files the document with the Registrar of Companies. In the next step, after getting the Registrar’s registration ticket, the company can go ahead with marketing the issue. The issue will be kept open for a fixed number of days, and investors can submit their application forms at the bidding centers. The investors will bid within the price band and the final price will be decided post the closure of the Issue. The receipts will be allotted to the investors in their
49:) against the underlying equity of issuing company to enable foreign companies to raise funds from the Indian securities Markets. The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to indian investors against these shares. The benefit of the underlying shares (like bonus, dividends etc.) would accrue to the
225:(RBI). Upon such exchange, individual persons resident in India are allowed to hold the underlying shares only for the purpose of sale within a period of 30 days from the date of conversion of the IDRs into underlying shares. SEBI has recently allowed shareholders to convert their depository receipts into equity shares of the issuer company and vice versa.
246:(QIBs), 30% of the issue to the retail individual investors and balance 20% of the issue to non-institutional investors and employees. The ratio of non-institutional investors and employees is at the discretion of the company to decide. The issue will fail if the company does not get QIB investors to the extent of 50% of the issue size.
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According to SEBI guidelines, IDRs will be issued to Indian residents in the same way as domestic shares are issued. The issuer company will make a public offer in India, and residents can bid in exactly the same format and method as they bid for Indian shares. The issue process is exactly the same:
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three crore in each of the preceding three full years (of twelve months each), of which not more than fifty per cent are held in monetary assets: Provided that if more than fifty per cent. of the net tangible assets are held in monetary assets, the issuer has made firm commitments to use such excess
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According to Sebi guidelines, the minimum bid amount in an IDR issue is Rs 20,000 per applicant. Like in any public issue in India, resident Indian retail (individual) investors can apply up to an amount of INR 2,00,000 and non-institutional investors (also called high-net-worth individuals) can
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account as is done for equity shares in any public issue. On 26 October 2010, SEBI notified the framework for rights issue of Indian
Depository Receipts (IDRs). Disclosure requirement for IDR rights would more or less be in line with the reduced requirement applicable for domestic rights issue.
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In 2010, it was reported that
Standard Chartered may be inching closer to an issue. "We have already got advisors and we will file for the IDR issue after our (India) results are published by March-end," said Neeraj Swaroop, Regional Chief Executive, India and South Asia of Standard Chartered.
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Standard
Chartered opened its IDR offering to Indian investors on May 25, 2010, as reported by BBC News. The price band for the offering is 100 (ÂŁ1.47; $ 2.10) to 115 rupees per IDR. The bank, which makes most of its profits in Asia, will issue 240 million IDRs through the offer.
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Patrick
Hosking, financial editor of the Times reports that Standard Chartered (may) offer up to $ 750 million of new shares to Indians. but India’s top financial portal reported top officials as suggesting the amount could be anywhere between $ 500 million and $ 750 million.
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In an interview with NDTV India, Neeraj
Swaroop, CEO - South Asia at Standard Chartered Bank, said that the decision to list in India through an Indian depository receipts (IDR) issue, was not about raising capital but it is about a message of commitment to India.
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IDRs would also help improve the Sharpe's ratio of domestic portfolios by reducing home bias, that is either rooted in mistakes on the part of fund managers or in capital controls, says
Professor Ajay Shah of the Indira Gandhi Institute of Developmental Research.
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it has a track record of distributable profits in terms of section 205 of the
Companies Act, 1956, for at least three out of the immediately preceding five years: Provided that extraordinary items shall not be considered for calculating distributable
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Standard
Chartered fixed its issue price for Indian Depository Receipts at Rs 104 per unit. At this issue price, the bank will raise Rs. 2,490 crore ($ 530 million) by selling 24 crore IDRs. Every 10 IDRs represents one share of the bank.
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the aggregate of the proposed issue and all previous issues made in the same financial year in terms of issue size does not exceed five times its pre-issue net worth as per the audited balance sheet of the preceding
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Further, Clause 97 in
Chapter X stipulates additional requirements from a foreign company intending to make an issue of IDRs: An issuing company making an issue of IDR shall also satisfy the following:
72:, using section 642 read with section 605A had prescribed the Companies (Issue of Indian Depository Receipts) Rules, 2004 (IDR Rules) vide notification number GSR 131(E) dated February 23, 2004.
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if it has changed its name within the last one year, at least fifty per cent. of the revenue for the preceding one full year has been earned by it from the activity indicated by the new name.
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According to Clause 26 in
Chapter III (“Provisions as to public issue”), the following are required of any company intending to make a public issue in India:
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Standard Chartered PLC Press release, May 30, 2010 | Standard Chartered PLC announces the public filing of a Draft Red Herring Prospectus in India
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into underlying equity shares of issuing company. IDR Holders can convert IDRs into underlying equity shares only with the prior approval of the
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Corporate lawyer Cyril Shroff of law firm Amarchand & Mangaldas & Suresh A. Shroff & Co. explain the tax implications.
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This was follow up with reports cited, Standard Chartered Plc files DRHP to issue IDRs in India with SEBI on March 30, 2010.
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was the first foreign company to have publicly elicited interest in making an IDR issue in India. Standard Chartered CEO
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Standard Charter expects to raise around $ 500–750 million (Rs 2,250-3375 crore) to grow its businesses globally.
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it has a net worth of at least INR one crore in each of the preceding three full years (of twelve months each);
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was quoted in the Indian media as saying the "IDR listing (is) to enhance StanChart's commitment to India."
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the issuing company has track record of compliance with securities market regulations in its home country.
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Securities and Exchange Board of India (Issue of capital and disclosure requirements) regulations, 2009
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became the first global company to file for an issue of Indian depository receipts in India in 2010.
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145:(Issue of capital and disclosure requirements) Regulations, 2009, as revised from time to time.
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on July 22, 2009. The SEBI has been notifying amendments to these guidelines from time to time.
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The IDRs opened at the Bombay Stock Exchange and National Stock Exchange on June 11 2010.
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Standard Chartered Allocates 36 Million Indian Depository Receipts To Anchor Investors
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504:"The IDRs opened at the Bombay Stock Exchange and National Stock Exchange on June 11"
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According to current regulations, at least 50% of the Issue is to be allocated to
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the issuing company is not prohibited to issue securities by any regulatory body;
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79:(SEBI)—the Indian markets regulator in 2006. Operation instructions under the
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Issues by foreign companies in India (Indian Depository Receipts)(IDRs)
486:"Standard Chartered Raises $ 540 Million From Share Sale in India"
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Securities and Exchange Board of India (SEBI), August 26, 2009
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The regulations relating to the issue of IDRs is contained in
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IDR listing to enhance StanChart's commitment to India: CEO
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The Indian depository Receipts shall not be automatically
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Standard Chartered might do an Indian Depository Receipt
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Standard Chartered set to make IDR history at Rs 105-115
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apply above INR 1,00,000 but up to applicable limits.
34:. The IDR is a specific Indian version of the similar
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Business Standard, Mumbai November 12, 2009, 17:37 IST
184:the issuing company is listed in its home country;
238:Reservations in IDR issues (clause 98, Chapter X)
435:Standard Chartered's Indian share offering opens
537:"Sebi doubles retail limit, tightens IPO norms"
75:The rules for IDRs were operationalized by the
65:that were first introduced in 1927 in the US.
16:Financial instrument dominated in Indian rupee
380:StanChart plans India listing in June quarter
316:Securities and Exchange Board of India (SEBI)
45:(custodian of securities registered with the
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488:. Business Week. 30 May 2010. Archived from
447:StanChart gets bids from 6 anchor investors
157:monetary assets in its business or project;
591:Indian Depository Receipt –The Way Forward
585:Issue of Indian Depository Receipts (IDRs)
368:Standard Chartered to be listed in Mumbai
68:The Ministry of Corporate Affairs of the
587:, Reserve Bank Of India Official Website
459:IDR not about capital: StanChart - Video
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152:it has net tangible assets of at least
273:Securities and Exchange Board of India
143:Securities and Exchange Board of India
77:Securities and Exchange Board of India
47:Securities and Exchange Board of India
558:Indian Depository Receipt (IDR) Video
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335:Reserve Bank Of India, July 22, 2009
326:Issue of Indian Depository Receipts
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472:"StanChart IDR priced at Rs 104"
449:Hindu Business Line, 25 May 2010
61:IDR's are based on the original
506:. Smart Investor. 11 June 2010.
81:Foreign Exchange Management Act
474:. Times of India. 31 May 2010.
244:qualified Institutional Buyers
200:the company will file a draft
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382:Money Control, March 4, 2010
63:American depositary receipts
283:European Depositary Receipt
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425:Morning Star, May 25, 2010
392:Standard Chartered Plc pdf
97:Standard Charter IDR Issue
36:global depository receipts
229:Eligibility for investors
20:Indian Depository Receipt
370:The Times, March 4, 2010
560:YouTube, March 23, 2010
202:red herring prospectus
102:Standard Chartered plc
91:Standard Chartered PLC
598:from the India Times.
539:. business.rediff.com
278:Reserve Bank of India
223:Reserve Bank of India
85:Reserve Bank of India
401:SEBI, March 30, 2010
137:Eligibility to issue
24:financial instrument
612:Depositary receipts
268:Government of India
83:were issued by the
70:Government of India
43:Domestic Depository
41:It is created by a
522:2011-07-21 at the
397:2010-06-01 at the
331:2009-08-15 at the
312:2011-07-21 at the
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622:Equity securities
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106:Peter Sands
22:(IDR) is a
606:Categories
543:27 October
294:References
520:Archived
395:Archived
329:Archived
310:Archived
262:See also
250:Taxation
219:fungible
161:profits;
57:History
206:demat
545:2010
461:NDTV
596:FAQ
608::
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