Online edition of India's National Newspaper
Tuesday, Jul 09, 2002

About Us
Contact Us
Business
News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Business Printer Friendly Page   Send this Article to a Friend

ADR, GDR norms further relaxed

NEW DELHI JULY 8. The Government today liberalised further the norms for raising funds from overseas market to acquire shares of public sector enterprises being disinvested by removing the end-use restrictions on utilising the funds.

"As per the current guidelines, there is no end-use restrictions for ADR, GDR and foreign currency borrowing (FCCB) proceeds other than the existing ban on investment in real estate and stock market,'' an official release said.

The Government and the Reserve Bank of India had eased the norms allowing Indian bidders to raise funds through ADRs, GDRs and external commercial borrowings (ECBs) for acquiring shares of PSEs in the first stage and buying shares from the market during the open offer in the second stage.

However, the Finance Ministry had received suggestions on the end-use restrictions that would impede companies to use the funds for acquiring the PSE shares. The relaxation of the norms would now give a free hand to the Indian bidders to raise funds from overseas markets and use it freely for participating in the PSEs' sell-off process. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu