The prospectus or letter of offer shall, inter alia, contain the following particulars, namely:-
In earlier post here, we discussed, eligibility and procedure related to issue of Indian Depository Receipt. In this post, we will discuss application for IDRs, its proceeds and Transfer of Indian Depository Receipts.
Application for IDRs
No application form for the securities of the issuing company shall be issued unless the form is accompanied by a memorandum containing the salient features of prospectus in the specified form.
We have discussed earlier here that according to Section 390 of the Companies Act 2013, the Central government make rules for –
- the offer of Indian Depository Receipt;
- the requirement of disclosures in prospectus or letter of offer issued in connection with Indian Depository Receipt;
- the manner in which Indian Depository Receipt shall be dealt with in a depository mode and by custodian and underwriters; and
- the manner of sale, transfer or transmission of Indian Depository Receipt,
by a foreign company.
These Rules are contained in Rule 13 of the Companies (Registration of foreign Companies) Rules, 2014.