The Indian depositary receipt (IDR) markets
long term prospects should not be harmed by the Securities and
Exchange Board of Indias (Sebi) decision to bar
conversion of IDRs to shares of a foreign company.
A Hong Kong-based bankers counsel told IFLR
that Sebis decision would not discourage IDRs. The
Indian government has simply protected the instrument, he
Sebi stipulated this month that Standard Chartereds
IDRs, currently the only ones in the market, were not fungible.
They could therefore not be converted into the