Page 19 - Mega Digi Page: General Awareness - Jan 2016
P. 19
www.bankersguru.org
(General Awareness)
Depository Receipts
Negotiable Local ISSUED Foreign
Financial Stock BY Publicly
Exchange
Security
Listed
Company
A depositary receipt is a type of negotiable (transferable) financial security that is traded on a
local stock exchange but represents a security, usually in the form of equity, that is issued by a
foreign publicly listed company.
It is a physical certificate, allows investors to hold shares in equity of other countries.
Working of Depository Receipt -
It is created when a foreign company wishes to list its already publicly traded shares or debt
securities on a foreign stock exchange,
Initial public offerings can also issue a Depository receipt.
Types of Depository Receipt
American Depository Receipt
Negotiable U.S. Foreign
certificate ISSUED Company
Ban
BY
Shares
k
U.S. In U.S.
DOLLARS Denominated Stock
Exchange
A negotiable certificate issued by a U.S. bank representing a specified number of shares in a
foreign stock that is traded on a U.S. exchange denominated in U.S. Dollars
Indian Depository Receipt
ISSUED Domestic
Negotiable
certificate
Depository
BY
UNDER
INDIAN Foreign
RUPEES Denominated Company SEBI
Shares
An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt
created by a Domestic Depository (custodian of securities registered with the Securities and
Exchange Board of India) against the underlying equity of issuing company to enable foreign
companies to raise funds from the Indian securities Markets.
Date of Release -23-Jan-16 SUBJECT: GA www.bankersguru.org
(General Awareness)
Depository Receipts
Negotiable Local ISSUED Foreign
Financial Stock BY Publicly
Exchange
Security
Listed
Company
A depositary receipt is a type of negotiable (transferable) financial security that is traded on a
local stock exchange but represents a security, usually in the form of equity, that is issued by a
foreign publicly listed company.
It is a physical certificate, allows investors to hold shares in equity of other countries.
Working of Depository Receipt -
It is created when a foreign company wishes to list its already publicly traded shares or debt
securities on a foreign stock exchange,
Initial public offerings can also issue a Depository receipt.
Types of Depository Receipt
American Depository Receipt
Negotiable U.S. Foreign
certificate ISSUED Company
Ban
BY
Shares
k
U.S. In U.S.
DOLLARS Denominated Stock
Exchange
A negotiable certificate issued by a U.S. bank representing a specified number of shares in a
foreign stock that is traded on a U.S. exchange denominated in U.S. Dollars
Indian Depository Receipt
ISSUED Domestic
Negotiable
certificate
Depository
BY
UNDER
INDIAN Foreign
RUPEES Denominated Company SEBI
Shares
An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt
created by a Domestic Depository (custodian of securities registered with the Securities and
Exchange Board of India) against the underlying equity of issuing company to enable foreign
companies to raise funds from the Indian securities Markets.
Date of Release -23-Jan-16 SUBJECT: GA www.bankersguru.org
