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Guidelines for Enabling Partial Two-Way Fungibility of Indian Depository Receipts (IDRs) :
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Gold Exchange Traded Fund Scheme (Gold ETFs) Investment in Gold Deposit Scheme (GDS) of Banks
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Introduction of Periodic Call Auction for Illiquid Scrips and Extension of Pre-open Session to all Scrips.
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Increase in FII debt limit for Government and Corporate Debt category
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Scheme of Arrangement under the Companies Act, 1956 –Revised requirements for the Stock Exchanges and Listed Companies
SEBI has in order to encourage more number of foreign companies to issue IDRs in the Indian market and also to enable the investors to take informed investment decision, decided to provide a detailed roadmap and guidelines for the future IDR issuances as well as for the existing listed IDRs. SEBI has announced this vide its circular CIR/CFD/DIL/6/2013 dated March 1, 2013
All the IDRs shall have partial two-way fungibility. The partial two-way fungibility means that the IDRs can be converted into underlying equity shares and the underlying equity shares can be converted into IDRs within the available headroom. The headroom for this purpose shall be the number of IDRs originally issued minus the number of IDRs outstanding, which is further adjusted for IDRs redeemed into underlying equity shares. The broad guidelines for fungibility of future IDR issuances and the existing listed IDRs are specified in the circular.
SEBI (Mutual Funds) Regulations, 1996, (MF Regulations) permits Gold Exchange Traded Fund scheme (Gold ETFs) to invest primarily in Gold and Gold related instruments. SEBI has vide its Circular CIR/IMD/DF/04/2013 dated February 15, 2013 decided to designate Gold Deposit Scheme (GDS) of banks as one such gold related instrument. Investment in GDS of banks by Gold ETFs of mutual funds will be subject to the conditions as specified in the circular.
SEBI has vide circular CIR/MRD/DP/6/2013 dated February 14, 2013 introduced trading through Periodic Call Auction for Illiquid scrips in equity market which shall be conducted only through periodic call auction sessions. SEBI has also extended pre-open call auction session to all other scrips in the equity market.
SEBI vide circular CIR/IMD/FIIC/3/2013 dated February 08, 2013 has Increased FII debt limit for Government and Corporate Debt category in pursuance of the circular issued by the Reserve Bank of India vide circular RBI/2012-13/391, dated January 24, 2013 enhancing the limits for investment by FIIs in the Government Debt Long Term category by US$ 5 billion to US$ 15 billion and the Corporate non-infrastructure debt category by US$ 5 billion. The complete details are enumerated in the circular.
SEBI has vide its circular CIR/CFD/DIL/5/2013 dated February 4, 2013 revised the requirements for the Stock Exchanges and Listed Companies for scheme of Arrangement under the Companies Act, 1956. The revised guidelines shall be applicable to all listed companies, which have not submitted the Scheme with the Hon’ble High Court. It shall also be applicable in cases wherein the companies have submitted the Draft Scheme with the Stock Exchange, under Clause 24(f) of Listing Agreement and such schemes have not yet been submitted with the Hon’ble High Court for approval.