Transfer and Redemption
A non-resident holder of GDRs/ADRs may transfer them, or may ask the ODB tQ redeem them, In the case of redemption, the ODB should request the DCB to get the corresponding underlying shares shares released in favour of the non-resident investor, for being sold directly on his behalf, or transferring them in the name of the non-resident in the books of account of the issuing company, The redeemed GDRs and underlying shares sold may be re-issued to the extent of such redemption and sale made in the domestic market. Such re-issuance should be n terms of the Foreign Exchange Management transfer or issue of security by a person resident outside India) Regulations, 2000, as mended from time to time, and the guidelines issued in this regard. In case of redemption of the GDRs leADERs into underlying shares, a request for the same should be transmitted by the ODB to the DCB in India, with a copy of the same being sent to the issuing company for information and ‘record. On redemption, the cost of acquisition of the shares underlying the GDRs ADRs would be reckoned as the cost 01) he date on which the ODB advises the DCB regarding redemption. The price of the ordinary shares of the issuing company prevailing in the Bombay Stock Exchange or the National Stock Exchange on the date of the advice of redemption should be taken as the cost of acquisition of the underlying ordinary shares. For the purpose of conversion of FCCBs, the. cost of acquisition in the hands of non-resident investors would be the conversion price which is determined on the basis of the price of the shares at the Bombay Stock Exchange or the national Stock Exchange on the date of conversion into shares.