PROVISIONS OF COMPANIES ACT, 2013 RELATING TO ISSUE OF GDR :

The New Companies Act, 2013 has laid down provisions for issue of Global Depository receipts under Section 41 and Companies (Issue of Global Depository Receipts) Rules, 2014.

According to Section 2(44) of Companies Act, 2013, “Global Depository Receipt” means any instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside India and authorised by a company making an issue of such depository receipts;

Section 41 provides that a company may, after passing a special resolution in its general meeting, issue depository receipts in any foreign country in such manner, and subject to such conditions, as may be prescribed.