On the back of recent decision by the Indian central bank (RBI) and the finance ministry, Foreign institutional investors (FIIs) will now be able to invest funds in Indian depository Receipts (IDRs).

Even though, RBI and finance ministry have approved the subscription of Non-Resident Indians (NRIs), it is still awaiting approval from the corporate affairs ministry.

The market regulator Securities Exchange Board of India (SEBI) has put a limit on the size needed for issuing IDRs at Rs 500 million and minimum investment by retail investors has been set at Rs 20 million.

IDRs are Indian counterparts of GDRs (global depository receipts0, which let foreign companies to lift funds from the Indian markets.