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StanChart's shoots up on two-way fungibility-news16032012

Friday, March 16, 2012

Standard Chartered PLC hits 20% upper circuit and touched the monthly high of Rs94.20, after the Finance Minster Pranab Mukherjee allowed two-way fungibility of Indian Depositary Receipts.

Two-way fungibility allows investors to buy Indian listed shares and sell them in the foreign market and vice versa, which improves liquidity.

Standard Chartered PLC Indian Depositary Receipts (IDR) had tanked in June 2011 when the Securities & Exchange Board of India declined to permit two-way fungibility in the counter citing abundant liquidity.

IDRs are shares issued by foreign companies to list on the Indian exchanges. It gives Indian investors an opportunity to own a shares of a foreign company. Standard Chartered PLC is currently the only IDR on Indian stock exchanges after it came out with the issue in May 2010.
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