Issue of GDR,sIDEs by IT Software Services Companies Homework Help

Issue of GDR,sIDEs by IT Software Services Companies

Indian companies engaged in information technology software and information technology services  (IT software/services) are eligible to   offer their non-resident/resident' permanent employees (including Indian and overseas working didirectorsGORslADRs against the issue of   ordinary shares,  subject to the operational guidelines/conditions issued from time to time by the Govemment (discussed subsequently), A   software company' is a company engaged in the manufacture/production of software and at least 80 per cent of its turnover is from software   elated activities. Information technology software/services include means companies that deal with such activities as  defined in  recommendation 19<a) and (b) of the notification issued by the planning Commission  on July 25, 1998. According to recommendation  9(a), rr software ~ans any representation of  instructions; data; sound/image, including source code and object code recorded in a machine  n  readable form and capable of being manipulated or providing interactive features to a user by means of a automatic' data processing  machine fall under the heading of IT products, but does not  include non-IT products.

rr service is defined as any service that results-from the  use of any IT  software over a system of IT products for realising value additions. The term rr Industry would cover development, production   and services related to IT products; the term IT software should replace computer software. According to 19(b), IT' products include  computer, digital/data communication  and digital/data broadcasting products. Such companies are also eligible to offer GDRs to the non- resident/resident permanent employees (including Indian and overseas working directors)  of their' subsidiary companies, incorporated in  india or abroad and engaged in IT software/service.  s, against the issue of ordinary shares, subject to the eligibility conditions and  operational guide-' linc:s/conditionality announced from time to time by the Government. Similarly, Indian companies  registered in India  and engaged in the following sectors/areas where 80 per cent of turnover   is from these sector/areas of the operation/business of the  company in the previous financial'  years, are eligible to offer CORsI ADRs against the issue of ordinary shares to their non-resident! resident permanent employees (including Indian and overseas working directors) and also to their SUbsidiary companies,   incorporated in India or abroad, !>subject the eligibility conditions and operational guidelines/conditionalities announced from time to   time by the Government: (i) Information Technology (as defined in the recommendation. 19(a) and (b) of Gazette Notification dated  2>-7-999, issued by the Planning Commission) and EnteRtainment Software, (ij) Pharmaceuticals,

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