Global Depository Receipts
This query is : Resolved
Prateek Biyani
(Querist)
06 December 2007
What is Global Depository Receipts(GDRs)as well as Indian Depository Receipts ? Please explain in simple and easy manner.
Sohil Ganeriwala
(Expert)
29 January 2008
A Global Depository Receipt or Global Depositary Receipt (GDR) is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account. GDRs represent ownership of an underlying number of shares.
Global Depository Receipts facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets - especially Russia.
Prices of GDRs are often close to values of related shares, but they are traded and settled independently of the underlying share.
Several international banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, Bank of New York. They trade on the International Order Book (IOB) of the London Stock Exchange.
IDR means any instrument in the form of depository receipt created by the domestic depository in India against the underlying equity shares of the issuing company. This has been stipulated in the Companies (Issue of Indian Depository Receipts) Rules, 2004.
Global Depository Receipts facilitate trade of shares, and are commonly used to invest in companies from developing or emerging markets - especially Russia.
Prices of GDRs are often close to values of related shares, but they are traded and settled independently of the underlying share.
Several international banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, Bank of New York. They trade on the International Order Book (IOB) of the London Stock Exchange.
IDR means any instrument in the form of depository receipt created by the domestic depository in India against the underlying equity shares of the issuing company. This has been stipulated in the Companies (Issue of Indian Depository Receipts) Rules, 2004.
Prateek Biyani
(Querist)
28 December 2008
plz tell me what is underlying shares in this respect. As per my knowledge, infosys has issued IDR/GDR plz clear the topic in more detail
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