A) A company that is unlisted in India decides to make an offer for sale of GDRs in London AIM exchange  so as to list its GDR

A) A company that is unlisted in India decides to make an offer for sale of GDRs in London AIM exchange  so as to list its GDR. The GDRs will be carved out of the promoters’ shares. This amounts to a sponsored GDR issue.

(a) Yes    (b) No

B. In a Rule 144A offer of an Indian company of its ADRs, the underwriters of the issue marketed the instrument to institutional investors only. The ADRs were not proposed to be listed in the US, instead they were to be listed on Luxembourg stock exchange. Some of the US funds require that the company list its ADRs in the US. The investment banker states that this is not possible under Rule 144A. Alternatively, the investment banker proposes a FCCB issue with a conversion option into shares listed in India. The company officials feel the investment banker is misleading the company without being aware of the regulatory requirements. Who is right?

a. The company      b. The investment banker