{"id":10990,"date":"2023-05-19T11:13:33","date_gmt":"2023-05-19T05:43:33","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=10990"},"modified":"2025-03-29T23:53:51","modified_gmt":"2025-03-29T18:23:51","slug":"what-are-global-depository-receipts-gdrs","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-are-global-depository-receipts-gdrs\/","title":{"rendered":"What are Global Depository Receipts (GDRs)?"},"content":{"rendered":"<h2><strong>About Global Depository Receipts (GDRs)?<\/strong><\/h2>\n<ul>\n<li>It is a f<strong>oreign currency-denominated negotiable financial instrument issued by a depositary bank.\u00a0<\/strong><\/li>\n<li>GDRs are certificates issued by a <strong>depository bank<\/strong>, which p<strong>urchases foreign company shares and deposits them in the account.\u00a0<\/strong><\/li>\n<li>GDRs are commonly u<strong>sed to raise capital from international investors<\/strong> through public stock offerings or private placement.<\/li>\n<li><strong>Purpose<\/strong>:\n<ul>\n<li><strong>Indian companies can only get their shares listed on foreign exchanges through Global Depository Receipts (GDR).<\/strong><\/li>\n<li>GDRs h<strong>elp Indian companies get foreign fund<\/strong>s and gain access to international capital.\u00a0<\/li>\n<li>The de<strong>pository bank is the intermediary <\/strong>that acts as the <strong>custodian of the shares <\/strong>issued by the Indian company.<\/li>\n<\/ul>\n<\/li>\n<li>The d<strong>epository bank can convert GDRs into shares and trade them<\/strong> on the domestic stock exchanges.<\/li>\n<li>GDRs a<strong>re instruments denominated in foreign currencies. <\/strong>The shares are<strong> denominated in the deposit receipt issuer&#8217;s local currency<\/strong>.<\/li>\n<li>The v<strong>alue of a GDR depends on the value of the underlying share.<\/strong><\/li>\n<li>GDRs are i<strong>ssued to investors throughout the country<\/strong> since they can be denominated as multiple forms of freely convertible currency.<\/li>\n<li>O<strong>nly companies with a three-year sound financial record can get access to GDRs.<\/strong><\/li>\n<li>Thus, I<strong>ndian companies should get clearance from the Ministry of Finance and Foreign Investment Promotion Board (FIPB) to obtain GDRs<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.thehindubusinessline.com\/markets\/tata-consumer-products-to-delist-gdrs-from-june-23\/article66858443.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Tata Consumer Products to delist GDRs from June 23<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global Depository Receipts is a foreign currency-denominated negotiable financial instrument issued by a depositary bank.<\/p>\n","protected":false},"author":5,"featured_media":10991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-10990","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=10990"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/10991"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=10990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=10990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=10990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}