Which of the following is a receipt listed in India and traded in rupees declaring ownership of shares of a foreign company ?

Options

A. Indian Depository Receipt (IDR)
B. European Depository Receipt (EDR)
C. Global Depository Receipt (GDR)
D. American Depository Receipt (ADR)

Answer

A

Explanation

An IDR is a receipt, declaring ownership of shares ofa foreign company. These receipts can be listed in India and traded in rupees. Just like oversea investors in the US-listed American Depository Receipts (ADRs) of Infosys and Wipro get receipts against ownership of shares held by an Indian custodian, an IDR is proof of ownership of foreign company's shares. The IDRs are denominated in Indian currency and are issued by a domestic depository and the underlying equity shares are secured with a custodian.