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An idea that failed: The IDR market may collapse with Standard Chartered’s global share buyback

The Indian Depository Receipt (IDR) channel for foreign companies to tap the country’s capital markets has almost closed with the failure of the experiment by Standard Chartered. Taxation, regulatory, policy, and foreign-exchange issues have stifled the IDR market, because of which the instrument has failed to catch the imagination of local and foreign investors.
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Joel
2 Sep 2019 5 Mins Read 0 comment
In this file photo from June 11, 2010, then chairman of Standard Chartered Bank John Peace (left) hammers a gong to mark the listing of the bank on the Bombay Stock Exchange. Getty Images
In this file photo from June 11, 2010, then chairman of Standard Chartered Bank John Peace (left) hammers a gong to mark the listing of the bank on the Bombay Stock Exchange.
Some nine years ago, when UK-based Standard Chartered Plc listed its Indian Depository Receipts (IDRs) on the BSE and the NSE, it was seen as a test case for opening up India’s growing capital market to foreign companies with established businesses in the country. The success of this listing was expected to induce other foreign companies to tap the
India because of its high savings rate [it] could be a good place for many foreign companies with recognisable brand names to be listed — though it (the future) looks a little farther than it looked in 2010,” adds Bindra. The Standard Chartered IDR puts the spotlight on the failure of the Indian authorities in tapping a promising instrument.
Some nine years ago, when UK-based Standard Chartered Plc listed its Indian Depository Receipts (IDRs) on the BSE and the NSE, it was seen as a test case for opening up India’s growing capital market to foreign companies with established businesses in the country. The success of this listing was expected to induce other foreign companies to tap the India because of its high savings rate [it] could be a good place for many foreign companies with recognisable brand names to be listed — though it (the future) looks a little farther than it looked in 2010,” adds Bindra. The Standard Chartered IDR puts the spotlight on the failure of the Indian authorities in tapping a promising instrument.

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