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