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| Year | 2011 50 Downloads |
| Volume/Issue/Review Month | Vol. - IV | Issue 5 | July |
| Title | Indian Depository Receipts – New beginning of an old concept |
| Authors | Chandan Kumar Tripathy |
| Broad area | Indian Depository Receipts – New beginning of an old concept |
| Abstract | In the fast changing tracks of global financial markets, India has entered the next lap when Standard Chartered Plc issued Indian Depository Receipts ( IDRs ) in May this year. This was the 1st IDR issued by any foreign company which allows the ownership of shares of a foreign company by an Indian citizen. IDR is a tool for foreign companies to raise funds from Indian citizens denominated in Indian currency and the underlying equity shares are held by a foreign custodian.The actual shares that are represented by the IDRs are held by an overseas custodian in the home country of the issuing company. Foreign companies interested to issue IDRs have to meet the strict guidelines set by SEBI and Indian companies Act, 1956 to safeguard the interests of the investor’s .Indian investors will get a chance to invest in foreign companies thus diversifying their portfolios without the foreign exchange fluctuations as the IDRs are denominated in Indian currency. |
| DOI | In the recent past, Indian capital market has become increasingly global in nature and it has become easier to trade around the world financial markets. Following liberalisation, India has removed the barriers restricting foreign investors and abolished l |
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