Schedule 10 [See Regulation 5(10)] - Issue of Indian Depository Receipts (IDRs) - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017

Schedule 10 [See Regulation 5(10)] Issue of Indian Depository Receipts (IDRs) 1. Issue of IDRs Companies incorporated outside India may issue IDRs through a Domestic Depository, to persons resident in India and outside India, subject to the following conditions (1) the issue of IDRs is in compliance with the Companies (Registration of Foreign Companies) Rules, 2014 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; (2) 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); (3) IDRs shall be denominated in Indian Rupees only; (4) the proceeds of the issue of IDRs shall be immediately repatriated outside India by the companies issuing such IDRs . 2. Purchase/ sale of IDRs: An FPI or an NRI or an OCI may purchase, hold or sell IDRs, subject to the following terms and conditions: (1) NRIs or OCIs may invest in the IDRs out of funds held in their NRE/ FCNR(B) account, maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016; (2) Limited two way fungibility of IDRs shall be permissible subject to the terms and conditions stipulated by Reserve Bank in this regard; (3) IDR shall not be redeemable into underlying equity shares before the expiry of one year from the date of issue; Redemption/ conversion of IDRs into underlying equity shares of the issuing company shall be a compliance the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004.