Tax wrapper29 Jan 2023 08:41
This is an extract from an article I found "First, the twists in the rules. Small cap boards are often not recognised stock exchanges even when the main exchange is. For example, stocks listed on Hong Kong’s GEM board or Singapore’s Catalist board do not qualify, even though main board shares from both countries are eligible.
Incidentally, the same rules apply to the UK’s own Aim small cap board – Aim stocks cannot be held in an ISA. However, stocks that are listed both on Aim and a recognised stock exchange abroad would qualify – this is quite common with mining stocks, often dual-listed in London and Australia or Canada.
The situation with ADRs and GDRs is the opposite. The fact that an ADR or GDR is listed on a recognised stock exchange does not mean that it can be held in an ISA. What matters is whether the underlying shares trade on a recognised stock exchange.
Thus an ADR of ICICI Bank would not qualify for an ISA. The ADR trades in New York, which is recognised, but the underlying shares trade in India, which is not."