"We are working at liberalising depository receipts scheme and hopeful of notifying the same in the next two-three months," Capital Markets Director at Department of Economic Affairs Sanjeev Kaushik said at an event organised by BNY Mellon and BSE here.
"The depository receipts regime needs some changes with regard to tax laws. The government is working on it and it is hoped that these changes should be in place by the next Budget. The government has spoken to various regulators on the depositary receipt regime," he said.
The Centre had recently accepted the M S Sahoo (ex-Sebi whole-time director) panel report that reviewed the depository receipts scheme framed in 1993.
The key recommendations of the committee include allowing issuance of depository receipts against any underlying securities-equity or debt, by any issuer-listed or unlisted.
The Budget speech announced Bharat Depository Receipts scheme, which would essentially be a revamp of the current depository receipts scheme.
The Centre is awaiting comments from regulators on the Bharat DRs scheme unveiled in the Budget. The government is also working on realigning the DR regime with the new Companies Act.
"It is expected that some reforms in this regard with respect to derivatives in the equity, currency and commodities space will be in place soon," he said.
The government is also looking at liberalising external commercial borrowing framework. "We are liberalising the ECB framework and it is expected to be implemented in the current financial year," Kaushik said.
He said the government is also working on Euroclearing, for Indian debt securities. The move is aimed at boosting investments into the debt market.
According to Kaushik, the new foreign portfolio investment regime has made life simpler for overseas investors and the government is looking at ways for further easing of routes for foreign investment into the country.

Latest News  from Business News Desk