VEDL Delisted: In a soup, please help

2nd Dec '21 by Sammy Saxena

8 comments 1228 reads

Hi,

I have about $100,000 worth of VEDL ADR (around 6000 stocks). It got delisted on Nov 8th without any notification to me as a shareholder. My broker is Interactive Brokers in USA.

If I don't convert the ADR to common India stock, they will get sold and they will withhold 43.68% tax in India on total proceeds, not just the gain. So that's a pretty bad state to be in as I don't file taxes in India and I have no idea how to get any refund there. Does anyone have any experience here?

So I am looking into converting the ADRs to common stock. I reached out to Vedanta, my broker Interactive Brokers, and Citibank who is the Depository driving the cancellation. The process for conversion is:

1. I need to create a DR type DMAT account in India - Painful, but Done.

2. I need to instruct my broker to DTC transfer the ADRs to Citibank (DTC code 953), who will then convert them to ordinary shares and deliver to the DR-type DMAT account.

I am stuck at the point at which I need an account number in Citibank where they will collect all the ADRs from customers such as me. No one seems to know that.

Is anyone else trying to convert their shares? Are you having any luck with the process?

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AnonymousUser1822519

2nd Dec '21

https://www.stockopedia.com/co...

This was discussed in the above thread. Although I don't think your specific query was answered.

Jason B2

6th Dec '21

So how did you decide? Did you manage to initiate the regular exchanging process with your DMAT-Account? And, by the way, how long did it take to open this as a foreigner and which broker did you use?
I have the same problem and not yet figured out, how to deal with it. But regarding to the other thread there is some hope, that at least the sale proceeds (after Indian taxes and fees) will be allocated to my broker. Has anybody validated this information?

Sammy Saxena

The due dates are extended:

In order to provide more time to the ADS holders, the Company has decided to extend the date by which holders can surrender their ADSs to the
Depositary in exchange for the underlying equity shares of the Company from December 08, 2021 to January 10, 2022. Holders of ADSs can now
surrender their ADSs to the Depositary in exchange for the underlying equity shares of the Company at any time on or prior to January 10, 2022.

Still in the process. I just created my DR type DMAT account in India. And in the process of transferring the ADR to ordinary shares to transfer to the India account.

Thanks for the reply! These might be good news (if the price doesn't decrease till then). I wonder if the Indian tax is lower, if you only sell small amounts each year. I will find out, if nobody here already knows that. I wanted to hold Vedanta for longer time anyways.
What does DR-type mean in this context? Can you recommend a broker, where a foreigner can open that type of account via internet?

7th Dec '21

It can't be opened via the internet. It is complicated with shipping physical forms to brokers in India. It is called "DR type Demat" accounts. DR is depository receipt - a place where ADRs converted can be held in book entry form.

8th Dec '21

i started this group alias to make it easier to chat and exchange info: https://groups.google.com/u/0/...

VEDL Delisted: In a soup, please help

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Sammy Saxena

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