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Gift tax and Wealth Tax

Holding of GDRs/ADR~ in the hands of non-resident investors and holding of the underlying  shares hy the ODB in a fiduciary capacity and  he transfer of the GDRs/ADR~ between nonresident  nonresident investors and the ODB would he exempt from wealth tax under the Wealth lax Act,   and from gift tax under the Gift Tax Act. 1958,

Operative Guidelines

These relate to (i) automatic route of the RBI to issue GDRs/ADRs to foreign investors, (ii) two-way  way fungibility of ADR.</GDR.~, t ii)  isinvestment of shares by Indian companies (iii) automatic route for’  issue of FeCHs (iv) issue of ADRs’:GDRs through automatic route, (v)  issue of ADR GDR linked  employee stock options hy Indian software/IT companies. and (vi) norms of overseas business acquisition   through ADRs/GDRs

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