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StanChart Jumps 5 Percent on Sebi Move on IDR Conversion

Thursday, August 30, 2012
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Mumbai: Standard Chartered jumped on 30 August by over 5 percent 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 percent to close at Rs.101.45 apiece. During the trading session, the stock rose by 8.22 percent to touch the day's high of Rs.104.

At the NSE, IDRs of Standard Chartered were up 5.26 percent 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.

On 29 August, 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 $.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.


Source: PTI
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