Two-way Fungibility

A

abhishreshthaa

Abhijeet S
Two-way Fungibility

  • The Reserve Bank of India in line with the announcement made by the Finance Minister, Government of India in his budget speech of Feb.2001 issued a notification under the FEMA Act to introduce the Two-way Fungibility in the Indian Capital market.

  • Two-way Fungibility allows conversion of ADRs/GDRs into domestic shares & the reconversion of the same shares into Depositary Receipts.



  • It means that the DRs can be converted into underlying shares & the same can be converted back into DRs.

:SugarwareZ-109:
 
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