Chartered Accountant
2731 Points
Joined January 2008
Dear Ram.......U CAN SIMPLY UNDERSTAND IT THIS WAY..........
When any person outside india wants to invest in teh shares in india, one of the ways to invest is ADR's or GDR's.......
Any indian company usually if wants to make a public issue, it issues shares to Indian public......But if it wants to raise capital from outside india i.e. from some foreign country, it can't issue shares their,.....it can do so only by way of Depository reciepts (DR)........
So u can say these are just like shares which are issued to raise capital outside india.........So any such DR's issued in America is known as ADR's (American depository reciepts)........and if issued in some other countries, known as GDR's (Global Depolitory reciepts)........Now since these aer issued with the help of banking channel, it came to ur notice while reading banking related article...............
thanx