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Global Depository
Receipt

By
Chandan Senapati
Ranjan Kumar Sethi
Need for Depository Receipt?
Depository Receipt
 A depository receipt is a transferable financial
security which can be traded on stock exchange.
 Ex...
Process to issue of DR
GDR
 If those depository receipts are listed on non-us
stock exchange, then they will be called GDR.
 It is denominate i...
Currently, the stock exchanges trading GDRs:
London Stock Exchange
Luxembourg Stock Exchange
Singapore Stock Exchange
Hong...
How does GDR work?
• Let,1 ITC share in Indian market trades around Rs.
1000. Means 10 Euros.
• HSBC buys 100 shares of IT...
Which Indian Companies have
GDR

Bajaj Auto

INFOSYS TECHNOLOGIES

Dr Reddy’s

SBI

HDFC Bank

WIPRO

ICICI bank

VSNL

IT...
GDR listing requirement
• Admission to trading on a Recognized Stock Exchange.
• Transferability of the Underlying Shares ...
Advantages provided by GDR
TWO FOLDED
Investor’s advantage
Issuer’s advantage
Investor’s Advantage
 Helps investors to invest in foreign companies
 Advantage of emerging market economies
 Improves ...
Issuer’s Advantage
 Attracting foreign investors
 Exposure in international market
 Enhances company’s visibility, stat...
Global Depository Receipt
Global Depository Receipt
Global Depository Receipt
Global Depository Receipt
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Global Depository Receipt

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Global Depository Receipt

  1. 1. Global Depository Receipt By Chandan Senapati Ranjan Kumar Sethi
  2. 2. Need for Depository Receipt?
  3. 3. 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.
  4. 4. Process to issue of DR
  5. 5. 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.
  6. 6. Currently, the stock exchanges trading GDRs: London Stock Exchange Luxembourg Stock Exchange Singapore Stock Exchange Hong Kong Stock Exchange
  7. 7. 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.
  8. 8. Which Indian Companies have GDR Bajaj Auto INFOSYS TECHNOLOGIES Dr Reddy’s SBI HDFC Bank WIPRO ICICI bank VSNL ITC L&T MTNL HINDALCO
  9. 9. 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.
  10. 10. Advantages provided by GDR TWO FOLDED Investor’s advantage Issuer’s advantage
  11. 11. 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
  12. 12. Issuer’s Advantage  Attracting foreign investors  Exposure in international market  Enhances company’s visibility, status and profile  Rise in capital

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