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TMI BlogFramework for monitoring of foreign holding in Depository ReceiptsX X X X Extracts X X X X X X X X Extracts X X X X ..... ian Depositories were required to develop a system to monitor the foreign holding, including that held by way of DRs, as per the limits prescribed under the Foreign Exchange Management Act, 1999 and applicable SEBI Regulations, and disseminate the information regarding outstanding DRs and available limit for conversion. For this purpose, the Circular provided that Indian Depositories shall have necessary arrangement with the Domestic Custodian and / or Foreign Depository. 3. Based on discussion with market participants, the broad operational guidelines for the above purpose are placed at Annexure . Indian Depositories, in consultation with each other and market participants, may prescribe the formats and other details, as may be ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e information as may be prescribed by Designated Depository for the purpose of computation of information in respect of Depository Receipts as and when requested. 3.3. Ensure that the underlying permissible securities, pertaining to a listed company, against which DRs are issued in the Permissible Jurisdiction, are held in a demat account, under a separate Type Sub-Type as prescribed by the Indian Depositories for the purpose of issue of DRs. 3.4. Provide certificate / declaration / information, to the Designated Depository in the prescribed format upon termination/cancellation of DR program. For this, the issuer or Foreign Depository shall be required to report such termination / cancellation to the Domestic Custodian. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Headroom = A (B + C) the limit up to which Permissible Securities can be converted to DRs 4.5. The Indian Depositories shall exchange with each other their respective list of companies, for dissemination of DR headroom related information, which shall be consolidated by both depositories and thereafter published on their respective websites. 5. Re-issuance mechanism 5.1. For the purpose of re-issuance of permissible securities, a Foreign Investor shall request SEBI registered Broker with requisite quantity of securities (based on available headroom) required for re-issuance of depository receipts which shall be forwarded to the Domestic Custodian. 5.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stor group as well as Offshore Derivative Instruments (ODI) subscribers and / or DR holders having common ownership, directly or indirectly, of more than fifty percent or on the basis of common control, to its Designated Depository Participant (DDP). The investor group may appoint one such FPI to act as a Nodal entity for reporting the aforesaid grouping information to its DDP in the format enclosed at Annexure A . Further, such Nodal FPI shall report the investment holding in the underlying Indian security as held by ODI subscriber and / or as DR holder, including securities held in the Depository Receipt account upon conversion ( DR conversion account), to its Domestic Custodian on a monthly basis (by the 10 th of every month) in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng part of investor group shall club the investment as held by FPIs as well as investment as held by such FPI in the capacity of ODI subscriber and / or DR holder and monitor the investment limits as applicable to single FPI. In case where the investment holding breaches the prescribed limits, the Indian Depository / Custodian, as the case may be, shall advise the concerned investor / investor group, to divest the excess holding within 5 trading days similar to requirement prescribed under SEBI Circular dated November 05, 2019 on Operational Guidelines for FPIs DDPs under SEBI (Foreign Portfolio Investors), Regulations 2019 and for Eligible Foreign Investors. Annexure A Sr. No. Name of repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Quantity of securities held (in ratio as being held in India) Value of securities held As on date (DD-MMM-YYYY) A B C D E F G H I J Note 1. Reference ISIN No. ISIN of the underlying Indian Security (ISINs issued by NSDL for underlying security). 2. The quantity of securities in the requisite ISIN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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