NISM Series XV : Research Analyst Certification Exam Notes
Page 7 Of 62
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Depository receipts (DRs) are financial instruments that represent shares of a foreign company. These depositary receipts trade in the local market (in which it is issued) and are denominated in local currency.
To issue a DRs, a specific quantity of underlying equity shares of the company is lodged with a custodian bank, which authorizes the issue of depository receipts against these shares.
American Depositary Receipts (ADRs) are issued and traded in U.S.A that are issued by a non-US company. Indian companies that have issued ADR - Infosys, Wipro, ICICI Bank and HDFC Bank.
Global Depositary Receipts (GDRs) refer to depositary receipts that are allowed to be traded in more than one country.
GDRs are preferred to be issued in the European Union member states as commonality of the regulations makes it easy for the issuing companies to comply with regulation across the region
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