The government on Wednesday further liberalised the overseas market access scheme for India Inc by allowing non-profit-making unlisted companies, who issued ADRs/GDRs before August 31, 2005, to sponsor the issues against their existing shares.The facility would be available pari-passu to all categories of shareholders of the company whose shares were being sold in the ADR/GDR market overseas, according to a finance ministry’s statement.These companies will be permitted to comply with listing conditions on the domestic stock exchanges within three years of having started making profit.Unlisted companies who have accessed FCCBs and ADRs/GDRs after the cut-off date or are planning to do so in future would, however, have to comply with the condition of mandatory prior or simultaneous domestic listing.This marks further easing of the scheme for the issue of FCCB and Ordinary Shares, through depository receipt mechanism, notified by the government in 1993. In November last year, the government had exempted companies going for simultaneous domestic and overseas listing from the Press Note 13 norms, which brought ADR/GDR and FCCB issues in alignment with Sebi guidelines for domestic public offers.
