Global Depository Receipts

A global depositary receipt (GDR) is a certificate issued by a bank that represents shares in a foreign stock on two or more global markets.

Features of GDR

  • It's a freely tradeable instrument that can be exchanged like any other security.
  • Through the use of a GDR, Indian enterprises with a three-year financial track record can easily gain access to global financial markets. Clearances from the Foreign Investment Promotion Board (FIPB) and the Ministry of Finance are required, however.
  • GDRs are issued to investors all around the country since they can be denominated in a variety of freely convertible currencies.
  • The GDR can ....
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