CS Professional · Strategic Management and Corporate Finance · Sources of Corporate Funding
Which is a feature of an Indian Depository Receipt (IDR)?
An IDR is issued in India by a foreign company, denominated in rupees and listed on Indian stock exchanges, with a domestic depository holding the underlying foreign shares. It is the opposite of ADRs and GDRs, which Indian companies issue abroad.
- AIssued by an Indian company to investors in the US
- BIssued in India by a foreign company, denominated in rupees, and listed on Indian exchangesCorrect
- CIssued by an Indian company and convertible into debt at maturity
- DIssued only to qualified institutional investors abroad
Explanation
An IDR is a rupee-denominated instrument issued in India by an overseas company through a domestic depository against underlying foreign shares, and it is listed on Indian exchanges. Issue by an Indian company abroad describes ADR or GDR.
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