Write Short note on
a. ADR
B. GDR
c. IDR
Dear Student,
a. Global Depository Receipts (GDR's)- These are the receipts issued by depository banks against the shares of a company. For instance, the share issued by the Indian company abroad in order to raise foreign currency. These depository receipts are usually denoted in US dollars and can easily be converted into shares at any point of time. However, GDRs can be listed and traded on the stock exchange of any foreign country other than America.
b. American Depository Receipts (ADR's)- These are receipts of the companies based in the USA. They are usually traded like any other securities in the market; however, such trading is restricted to the American securities markets only. In addition to this, such instruments are sold only to the American citizens.
Regards.
c. Indian Depository Receipts(IDR's)-Indian depository receipt ia s receipt which is issued only to Indian citizens.Through IDR foreign company can raise the fund from Indian market.IDR provides access to more liquid markets and also provide funds for lower costs and better terms.It helps to exploit international demand for shares of the company.