The Law of Foreign Direct Investment – Depository Receipt

The Law of Foreign Direct Investment - Depository Receipt

THE LAW OF FOREIGN DIRECT INVESTMENT

TOPIC- Depository Receipt (Important terms in FDI)

 

A ‘Depository Receipt’ (DR) means a negotiable security issued outside India by a Depository Bank, on behalf of an Indian company, which represent the local Rupee dominated equity shares of the company held as deposit by a Custodian bank in India. DRs are traded on Stock Exchanges in the US, Singapore, Luxembourg, etc.

DRs listed and traded in the US markets are known as American Depository Receipts (ADRs) and those which are listed and traded anywhere else are known as Global Depository Receipts (GDRs).

 

The Law of Foreign Direct Investment - Depository Receipt
The Law of Foreign Direct Investment – Depository Receipt
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