Govt has allowed firms to issue global depository
receipts and foreign currency convertible bonds at
lower prices than earlier permitted, to help firms
whose stock prices have plunged to raise money
abroad more easily.
"Government has received a number of representations
that the extant pricing norms affect corporates
adversely in a bearish market," the finance minister
said in a statement. The new rules will apply to
GDRs, American Depository Receipts and foreign
currency convertible bonds, it said.
India's benchmark share index has fallen more than
55 percent since January, and earlier rules which
mandated a higher floor for the listing price
overseas would have dampened investor appetite for
such issues. Under the new rules, the floor will be
the average of the weekly high and low price of the
share for two weeks leading to the 30 days preceding
opening of the issue, the ministry said.
