Sebi ruling on StanChart IDR may pave way for conversion

Sebi on Friday ruled that StanChart need not convert the IDRs into underlying shares (listed on the LSE) after the one-year lock-in that ends this week. Sebi seems to have taken the view that there is enough liquidity in the IDRs and so the company need not redeem the IDRs

June 07, 2011 / 14:45 IST

Santosh Nair
Moneycontrol.com

An unintended consequence of the Sebi ruling on the Indian Depository Receipts (IDRs) of Standard Chartered Plc could be that, IDR investors may well get a chance to convert their holding in the underlying shares in a few months from now. That is because the IDRs could lose favour with institutional investors

first published: Jun 7, 2011 10:12 am

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Sebi ruling on StanChart IDR may pave way for conversion

Sebi on Friday ruled that StanChart need not convert the IDRs into underlying shares (listed on the LSE) after the one-year lock-in that ends this week. Sebi seems to have taken the view that there is enough liquidity in the IDRs and so the company need not redeem the IDRs

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