SEBI eases listing norms for potential issuers from IOSCO countries

SEBI vide its Circular SEBI/CFD/DIL/IDR/1/2009/16/06 dated June 16, 2009 has simplified the listing agreement for Indian Depository Receipts (IDRs) for potential issues from countries, which are part of the International Organization of Securities Commission (IOSCO). Accordingly, SEBI has drafted a model listing agreement for IDR issuers having its registered office situated in a country, the securities market regulator of which is a signatory to MMOU of IOSCO. With respect to most of the provisions especially Corporate Governance requirements and disclosure of periodical results, the issuer is allowed to follow the home country requirements provided equitable treatment is given to the IDR holders vis-à-vis holders of equity shares. For the issuing companies from other jurisdictions, the existing model listing agreement for IDRs shall continue to apply till further advice in this regard. This is part of the market regulator’s attempts to reduce additional regulatory requirements and lower costs.  

A copy of the Circular is available here.