Answering Why fund house come up with NFOs? Why fund house don’t come up with new funds often? and When you should avoid investing in NFO?
Companies outside India can raise capital from the Indian capital market with the Government notifying norms for issue of Indian Depository Receipts ( IDRs ). This has been stipulated in the Companies (Issue of Indian Depository Receipts) Rules, 2004 but there is not even a single company till date after 5 years listed as IDR.