GDRs are 'securities'; SEBI has jurisdiction to act against Lead Manager of GDRs issued outside Indi

CL : GDRs would fall within the definition of `securities' as defined under Section 2(h) of the Securities Contracts (Regulation) Act,1956. Though GDRs are issued outside India, such issue is based on the ordinary shares deposited with the domestic custodian bank. Therefore, SEBI has the jurisdiction to act against the Lead Managers of GDR issue and to debar them. SEBI's jurisdiction cannot be denied on the ground that GDRs are issued outside India