Standard Chartered today jumped by over 5 per cent on Indian bourses after financial sector regulators RBI and Sebi allowed partial flexibility in conversion of Indian Depository Receipts (IDRs) into equity shares by investors.
Defying the weakness in the broader market,Standard Chartered scrip on the BSE surged by 5.57 per cent to close at Rs 101.45 apiece. During the trading session,the stock rose by 8.22 per cent to touch the day’s high of Rs 104.
At the NSE,IDRs of Standard Chartered were up 5.26 per cent to settle at Rs 101.10. In the intra-day trade,the stock touched a high of Rs 104 and a low of Rs 99.
The BSE’s benchmark Sensex fell by 141 points to close at 17,490.81 points.
IDRs are depository receipts denominated in rupees.
Shares underlying the IDRs are deposited with the custodian,who holds the shares on behalf of the depository.
Yesterday,RBI and Sebi allowed partial flexibility in conversion of IDRs into equity shares by investors,while capping the funds to be raised through IDRs at USD 5 billion.
The move follows a proposal in the 2012-13 budget to allow two-way fungibility of IDRs,subject to a ceiling.
The decision is expected to help in attracting foreign entities to list their IDRs on domestic bourses.