New Delhi, May 20 (pti): The government is likely to ease the norms for Indian depository receipts (IDR).

idrs are financial instruments that allow foreign companies to mobilise funds from the Indian markets by offering equity and getting listed on the stock exchanges.

The instrument is similar to GDRs and ADRs that allow Indian companies to raise funds from the European and American markets respectively.

The ministry of corporate affairs has cleared the guidelines and it will be sent to the law ministry for vetting, official sources said. The modified guidelines are likely to be notified by the end of this month or by early next month.

The revamped IDR guidelines are likely to dilute the conditions for pre-issued paid-up capital, free reserves and minimum average market capitalisation of the company.

The existing norms, issued in 2004, require companies to have at least $100 million as pre-issue paid-up capital and free reserves and $500 million average turnover during the three financial years preceding the issue.

These requirements are likely to be cut to $50 million and $100 million, the sources said.