Markets regulator Sebi on Thursday came out with a framework to monitor foreign holding in depository receipts (DRs).
The broad operational guidelines have been put in place based on discussions with market participants, the Securities and Exchange Board of India (Sebi) said in a circular.
It further said Indian depositories, in consultation with each other and market participants, may prescribe the formats and other details, as may be necessary to operationalise the guidelines.
Under the framework, a listed company will appoint one of the Indian depositories as the designated depository for the purpose of monitoring of limits in respect of depository receipts.
The designated depository in co-ordination with domestic custodian, other depositories and foreign depository (if required) will compute, monitor and disseminate the DRs' information as prescribed in the framework.
Further, the information will be disseminated on the websites of both the Indian depositories.