SCHEDULE 07 - INDIAN DEPOSITORY RECEIPTS BY ELIGIBLE COMPANIES RESIDENT OUTSIDE INDIA [See Regulation 5 (8) and 13] - Foreign Exchange Management (Transfer or Issue Of Security By A Person Resident Outside India) Regulations, 2000

These rules have been superseded vide New Regulations New Regulations of 2017 1 Schedule 7 [See Regulation 5 (8) and 13] INDIAN DEPOSITORY RECEIPTS BY ELIGIBLE COMPANIES RESIDENT OUTSIDE INDIA 1. Issue of IDRs :- Eligible companies resident outside India may issue Indian Depository Receipts (IDRs) through a Domestic Depository, to persons resident in India and outside India, subject to the following conditions :- (a) the issue of IDRs is in compliance with the Companies (Issue of Indian Depository Receipts) Rules, 2004, as amended from time to time. (b) the issue is in compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended from time to time. (c) any issue of IDRs by financial / banking companies having presence in India, either through a branch or subsidiary, shall require prior approval of the sectoral regulator(s). (d) IDRs shall be denominated in Indian Rupees only. (e) The proceeds of the issue of IDRs shall be immediately repatriated outside India by the eligible companies issuing such IDRs. 2. Purchase / sale of IDRs :- A SEBI registered FII including SEBI approved sub-accounts of the FIIs 3 [or a Registered Foreign Portfolio Investor registered in accordance with the provisions of Securities and Exchange Board of India(SEBI) (Foreign Portfolio Investors) Regulations, 2014.] or an NRI may purchase, hold or sell IDRs, subject to the following terms and conditions :- (a) NRIs may invest in the IDRs out of funds held in their NRE / FCNR (B) account, maintained with an Authorised Dealer / Authorised bank. 2 [(b) Limited two way fungibility of IDRs shall be permissible subject to the terms and conditions stipulated by Reserve Bank in this regard from time to time] (c) IDRs shall not be redeemable into underlying equity shares before the expiry of one year from the date of issue. (d) Redemption / conversion of IDRs into underlying equity shares of the issuing company shall be in compliance with sub-regulation (7) of Regulation 22, of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004. ************* Notes: 1. Inserted vide Notification No. FEMA 224/2012-RB, DATED 7-3-2012 2. Substituted vide Notification No. FEMA. 242/2012-RB Dated 19-10-2012 w.e.f. 28th day of August, 2012, before it was read as, (b) IDRs shall not be automatically fungible into underlying equity shares of the issuing company. 3. Inserted vide Notification No. FEMA. 297/2014-RB dated March 13, 2014