Sebi comes out with framework for monitoring foreign holding in depository receipts

Mumbai: The Securities and Exchange Board of India (Sebi) has come out with framework for monitoring foreign holding in depository receipts (DRs)

The regulator said listed companies should appoint one of the Indian depositories as the designated depository for monitoring limits in depository receipts.

The designated depository in co-ordination with domestic custodian, other depository and foreign depository if required should compute, monitor and disseminate the DRs information as prescribed in the framework, it said.


Sebi said foreign portfolio investors (FPIs) should report the details of all such FPIs forming part of the same investor group as well as Offshore Derivative Instruments (ODI) subscribers and DR holders having common ownership, directly or indirectly, of more than fifty percent or on the basis of common control, to its DDP (Designated Depository Participant).

The investor group can appoint one such FPI to act as a Nodal entity for reporting the grouping information to its DDP.