This document discusses Global Depository Receipts (GDRs). It defines a GDR as a depository receipt that represents ownership of shares in a non-US company and trades on an exchange outside of the US, such as in London or Luxembourg. The document outlines the process for companies to issue GDRs and lists several major Indian companies that have done so, such as Infosys, Dr. Reddy's, and HDFC Bank. It also details requirements for GDR listings, such as a minimum market capitalization of £700,000. Finally, the summary discusses advantages that GDRs provide for both investors and issuers, such as improved access to foreign markets and increased capital for companies.

1. Global Depository
Receipt
By
Chandan Senapati
Ranjan Kumar Sethi

2. Need for Depository Receipt?

5. Depository Receipt
 A depository receipt is a transferable financial
security which can be traded on stock exchange.
 Examples of depository receipts are ADR and
GDR.

6. Process to issue of DR

8. GDR
 If those depository receipts are listed on non-us
stock exchange, then they will be called GDR.
 It is denominate in US dollars or Euros.

9. Currently, the stock exchanges trading GDRs:
London Stock Exchange
Luxembourg Stock Exchange
Singapore Stock Exchange
Hong Kong Stock Exchange

10. How does GDR work?
• Let,1 ITC share in Indian market trades around Rs.
1000. Means 10 Euros.
• HSBC buys 100 shares of ITC and issues in the ratio
10:1 in foreign market .
• Means 1 GDR represents 10 ITC share, i.e. 100 Euros.
• Subsequent price is determined by market forces.

11. Which Indian Companies have
GDR
Bajaj Auto
INFOSYS TECHNOLOGIES
Dr Reddy’s
SBI
HDFC Bank
WIPRO
ICICI bank
VSNL
ITC
L&T
MTNL
HINDALCO

12. GDR listing requirement
• Admission to trading on a Recognized Stock Exchange.
• Transferability of the Underlying Shares &
GDRs: The shares underlying the GDRs as well as GDRs
itself must be freely transferable, fully paid and free
from any restrictions on transfer.
•
25% of the GDRs must be in public hands. This 25%
should not include any investor taking more than 5%.
• Market capitalization: The expected aggregate market
value of all GDRs to be listed must be at least £700,000.

13. Advantages provided by GDR
TWO FOLDED
Investor’s advantage
Issuer’s advantage

14. Investor’s Advantage
 Helps investors to invest in foreign companies
 Advantage of emerging market economies
 Improves communication with share holders
globally
 More transparency and stability

15. Issuer’s Advantage
 Attracting foreign investors
 Exposure in international market
 Enhances company’s visibility, status and profile
 Rise in capital