The Securities and Exchange Board of India (Sebi) is planning to clamp down on depository receipts (DRs) as part of efforts to check the flow of black money into the stock market. Sources said Sebi planned to make it mandatory for foreign depositories to reveal details of endbeneficiaries holding DRs issued by Indian companies. The new framework will align knowyourcustomer (KYC) requirements for DRs with provisions to prevent money laundering. Many Indian companies issue DRs to raise capital abroad. DRs have shares as an underlying asset and are typically issued byabank, known as the depository bank, on behalf of a company. Sebi has proposed DRs can be exercised by the issuer only if information on beneficial ownership is available. Further, all acquisitions made through DRs resulting inachange in control inalisted company are expected to be governed by Sebi´s takeover rules. For unlisted companies, DRs are permitted only in sectors eligible for investment by registe