Reserve Bank of India has issued a circular about loans and advance against the Indian Depositorty receipts. RBI gives the clear instruction about loans on IDR, as some companies got the approval of loans against IDR but now no company will get the permission to get the approval of loans against IDR. Full notification is as under.
2. The matter regarding extending of finance for subscription to the IDRs and loans thereagainst has been examined. It has been decided that no bank should grant any loan/advance for subscription to IDRs. Further, no bank should grant any loan/advance against security/collateral of IDRs issued in India.
Chief General Manager-in-Charge
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