Notification of the long-awaited Indian Depository Receipts, allowing foreign firms to get listed on Indian bourses, is hanging fire since the finance ministry is yet to decide on whether Department of Company Affairs or SEBI should be given the authority for regulation.

DCA, which had been asked to frame detailed guidelines for IDRs, has submitted these to the ministry recently, official sources said in New Delhi adding the government is in a dilemma on which of these two agencies should be allowed to operationalise IDRs.

"As per section 605 A of the Companies Act, DCA is empowered to frame IDR guidelines and if the government so decides, we can implement these too. But IDRs relate essentially to listing of companies and Sebi's role in this scenario cannot be overlooked," they said.

Incidentally, the DCA Secretary is attending a board meeting of Sebi in Mumbai on Friday and the issue may come up for discussion between him and the Sebi chairman, sources said but declined to make any further comments.

First mentioned in the Budget speech in March last year, IDR guidelines have been framed only recently. But even now their early implementation seems doubtful.

As per the original proposal with DCA, IDRs will be another option to the MNCs to raise funds from the Indian public besides the Initial Public Offer route already open.

The guidelines for IDRs are believed to be on the lines of the American Depository Receipt and Global Depository Receipt options available to Indian companies for listing overseas, sources added.

They said DCA has consulted market watchdog Sebi besides Department of Economic Affairs, merchant bankers, Institute of Chartered Accountants of India and the Institute of Company Secretaries for framing these guidelines.

"The guidelines include instructions on whether MNCs can use the depository route, can they hold road shows, does Sebi need to be involved on the pricing issue and what all are the disclosure requirements," sources said.

They said the guidelines would be notified as a rule under Section 605 (A) of the Companies Act.