The rules for IDRs were operationalized by the Securities and Exchange Board of India (SEBI)—the Indian markets regulator in 2006.
Operation instructions under the Foreign Exchange Management Act were issued by the Reserve Bank of India on July 22, 2009.
Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India in 2010.
[3] Standard Chartered plc was the first foreign company to have publicly elicited interest in making an IDR issue in India.
Standard Chartered CEO Peter Sands was quoted in the Indian media as saying the "IDR listing (is) to enhance StanChart's commitment to India.
Patrick Hosking, financial editor of the Times reports that Standard Chartered (may) offer up to $750 million of new shares to Indians.
[6] This was follow up with reports cited, Standard Chartered Plc files DRHP to issue IDRs in India with SEBI on March 30, 2010.
The general body of investors will get a chance to read and review the DRHP as it is a public document, available on the websites of SEBI and the book running lead managers.
SEBI has recently allowed shareholders to convert their depository receipts into equity shares of the issuer company and vice versa.
[18] IDRs would also help improve the Sharpe's ratio of domestic portfolios by reducing home bias, that is either rooted in mistakes on the part of fund managers or in capital controls, says Professor Ajay Shah of the Indira Gandhi Institute of Developmental Research.