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No country has regulatory power over GDRs, says BSE director

No single country has any power to regulate global depository receipts or GDRs, though such receipts are actively traded in international markets, according to Bhagirat Merchant, currently director (and former president) of the Bombay Stock Exchange.

He shared his experience with members of the Indian Merchants' Chamber on "Domestic Companies -- International Raisings with Reference to GDR, ADR and Other Options" in Bombay.

Merchant said the GDRs are not traded on the bourses in India. He pointed out that resources to the tune of $ 85 trillon are available in the international market.

If India succeeds in tapping even a small portion of it through GDRs and other suitable instruments, investment needs of infrastructure, education and health sectors would be met, Bhagirat Merchant said.

Earlier, Pradeep Chinai, the IMC president said that India should quickly move on to implement the second phase of reforms in the financial sector, so that it will be able to access international financial market far more effectively.

Experience of Merchant, who has raised huge funds from international markets, was valuable to others seeking to venture in that direction, he said.

Merchant is also chairman of Bhagirat Merchant Stock Broking Private Limited.

UNI

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