What is IDR.What is the Process of issuing IDR. What is the features and Merits of IDR and what are its types.

Dear student,

An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository against the underlying equity of issuing company to enable foreign companies to raise funds from the Indian securities Markets.

For issuing IDR one need to take prior approval from SEBI and other concerned authorities, then it need to appoint custodian etc.

The benefits of issuing IDR are:
i) It integrate Indian capital market with world market.
ii) It increase scope of Indian companies in global market.
iii) It give opportunity to Indian investor to buy foreign stock.


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