India Inc Likely To Mobilize Funds In Japan Via DR

Japan is likely o may soon allow Indian companies to raise fund through depository receipts (DR). The proposed Japanese depository receipts (JDR) could be linked to the financing model of $90bn Delhi-Mumbai industrial corridor. In fact, the Japanese version of the American depository receipts (ADR) will allow Indian companies to woo Japanese investors even without listing in their stock exchange, in addition to promoting the company''s brand name in Japan. The amount of Japanese household finance assets is estimated to be around $12.5 trillion. The plan is likely to be finalised in the first week of July when president of Tokyo Stock Exchange Taizo Nishimuro will visit India as part of Japan''s trade and industry minister Akira Amari''s deligation. Representatives of five financial institution including Mitsubishi UFJ Trust and Banking Corporation, Daiwa Securities SMBC Co and Nomura Holdings will also accompamy the team. In fact, ADRs enable US investors to buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.