Question

What is IDR?

What do you mean by Indian Depository Receipts (IDRs)?

Answer 1

1. An IDR is a rupee-denominated instrument that represents shares in a foreign corporation.
2. It is issued by a foreign firm to Indian investors to raise capital in the Indian market.
3. IDRs represent shares held by an Overseas Custodian Bank (OCB), a foreign bank with branches in India.
4. This bank authorizes the Indian Depository, a SEBI-registered body such as the National Security Depository Ltd. (NSDL).
5. This body issues IDRs through a public offer to investors in India.
6. IDRs can be listed on any stock exchange in India.
7. Standard Chartered Bank is the first foreign company to issue IDRs.