Raising Equity in US market using ADR issue. This presentation was created for International Finance and to check the benefits for the companies to go for ADR issue. We are students from IGTC, Mumbai,
American Depository Receipts (ADRs) allow investors to hold shares of foreign companies that trade on U.S. stock exchanges, providing benefits of diversification and access to emerging markets. ADRs are issued by depository banks and represent ownership in the shares of the foreign company that are held in trust by the depository bank in the company's home country. There are different levels of ADR programs with varying reporting requirements depending on whether the shares trade over-the-counter or on major stock exchanges.
An American depositary receipt (ADR) represents shares of a foreign company that trades in the US financial markets. ADRs allow foreign companies to sell shares and raise capital in the US while being denominated in US dollars. The first ADR was introduced in 1927 for the British retailer Selfridge. There are different levels of ADRs depending on their listing and offering facilities. A global depositary receipt (GDR) similarly represents shares of a foreign company but trades internationally rather than just in the US. Major banks like JPMorgan Chase and Citigroup issue ADRs and GDRs.
The document discusses various ways that companies can raise equity capital internationally, including listing shares on foreign stock exchanges, issuing depository receipts, and listing Indian Depository Receipts (IDRs) on Indian exchanges. It provides details on major stock exchanges worldwide, cross-listing of shares, American Depository Receipts (ADRs), Global Depository Receipts (GDRs), their uses and benefits, and gives examples of companies that have issued ADRs and GDRs. It also covers the first company to issue IDRs in India.
The document discusses foreign portfolio investment (FPI) in India. It provides background on FPI, including that it involves buying securities like stocks and bonds in another country. It discusses the regulator of India's securities market (SEBI) and the eligible criteria for registration as an FPI, including sufficient experience, competence, track record, and financial soundness. Previous classes of foreign investors (FIIs and QFIs) are compared to the current FPI framework. Tax rates on capital gains are lower for FPIs than for FIIs. Investment limits for foreign entities are also mentioned.
Foreign portfolio investment (FPI) refers to passive investments made by foreign investors in securities and other financial assets in India. FPI does not provide direct ownership or management control over companies. India opened up to FPI in 1992 and since then it has been a major source of private capital inflows. Factors that attract FPI include a strong performing stock market, economic growth, and currency appreciation, while factors that discourage it include high exchange rate volatility, poor domestic growth, and higher interest rates abroad. Foreign investors must meet eligibility criteria to invest as a registered FPI and are subject to individual and aggregate investment limits and guidelines. FPI can invest in equities, debt, derivatives and participate in corporate actions according to SEBI
This document provides an overview of foreign portfolio investment (FPI) in India. It discusses the origin and composition of FPI flows, including foreign institutional investments, depository receipts, and offshore funds. It explains that FPI consists of passive investments in stocks, bonds, and other securities, as opposed to foreign direct investment which involves ownership and management of firms. The document outlines the benefits of FPI to India's economy as well as trends in FPI over time. It also analyzes the determinants and impacts of FPI flows, including both risks and benefits. In summary, the document serves as a comprehensive introduction to the topic of foreign portfolio investment in the Indian financial market.
This document summarizes the categories of foreign portfolio investors (FPIs) and the eligibility criteria for registration as an FPI. It outlines three categories of FPIs - Category I includes foreign government-related entities, Category II includes regulated foreign banks and funds, and Category III includes other foreign investors not covered in Categories I and II. It also describes the types of instruments FPIs can invest in in India, such as listed shares, government securities, and corporate debt. The document notes that FPI regulations prohibit investment in unlisted shares but allow existing holdings to be maintained. It concludes by listing the eligibility criteria an applicant must meet for FPI registration, including experience, competence, reputation, and being from a country with
Foreign portfolio investments in indiashwetaghag18
- Foreign portfolio investment in India has increased significantly since the early 1990s when regulations were changed to encourage foreign investment. Total FPI grew from $1.6 billion in 1993-94 to over $127 billion by December 2011.
- The composition of FPI has changed over time, with investment from foreign institutional investors (FIIs) like pension funds and mutual funds becoming the dominant source of FPI, accounting for 75% of total FPI in 2007-08.
- FPI has impacts on the Indian economy through effects on the stock market, currency exchange rates, and inflation levels.
American Depository Receipts (ADRs) allow investors to hold shares of foreign companies that trade on U.S. stock exchanges, providing benefits of diversification and access to emerging markets. ADRs are issued by depository banks and represent ownership in the shares of the foreign company that are held in trust by the depository bank in the company's home country. There are different levels of ADR programs with varying reporting requirements depending on whether the shares trade over-the-counter or on major stock exchanges.
An American depositary receipt (ADR) represents shares of a foreign company that trades in the US financial markets. ADRs allow foreign companies to sell shares and raise capital in the US while being denominated in US dollars. The first ADR was introduced in 1927 for the British retailer Selfridge. There are different levels of ADRs depending on their listing and offering facilities. A global depositary receipt (GDR) similarly represents shares of a foreign company but trades internationally rather than just in the US. Major banks like JPMorgan Chase and Citigroup issue ADRs and GDRs.
The document discusses various ways that companies can raise equity capital internationally, including listing shares on foreign stock exchanges, issuing depository receipts, and listing Indian Depository Receipts (IDRs) on Indian exchanges. It provides details on major stock exchanges worldwide, cross-listing of shares, American Depository Receipts (ADRs), Global Depository Receipts (GDRs), their uses and benefits, and gives examples of companies that have issued ADRs and GDRs. It also covers the first company to issue IDRs in India.
The document discusses foreign portfolio investment (FPI) in India. It provides background on FPI, including that it involves buying securities like stocks and bonds in another country. It discusses the regulator of India's securities market (SEBI) and the eligible criteria for registration as an FPI, including sufficient experience, competence, track record, and financial soundness. Previous classes of foreign investors (FIIs and QFIs) are compared to the current FPI framework. Tax rates on capital gains are lower for FPIs than for FIIs. Investment limits for foreign entities are also mentioned.
Foreign portfolio investment (FPI) refers to passive investments made by foreign investors in securities and other financial assets in India. FPI does not provide direct ownership or management control over companies. India opened up to FPI in 1992 and since then it has been a major source of private capital inflows. Factors that attract FPI include a strong performing stock market, economic growth, and currency appreciation, while factors that discourage it include high exchange rate volatility, poor domestic growth, and higher interest rates abroad. Foreign investors must meet eligibility criteria to invest as a registered FPI and are subject to individual and aggregate investment limits and guidelines. FPI can invest in equities, debt, derivatives and participate in corporate actions according to SEBI
This document provides an overview of foreign portfolio investment (FPI) in India. It discusses the origin and composition of FPI flows, including foreign institutional investments, depository receipts, and offshore funds. It explains that FPI consists of passive investments in stocks, bonds, and other securities, as opposed to foreign direct investment which involves ownership and management of firms. The document outlines the benefits of FPI to India's economy as well as trends in FPI over time. It also analyzes the determinants and impacts of FPI flows, including both risks and benefits. In summary, the document serves as a comprehensive introduction to the topic of foreign portfolio investment in the Indian financial market.
This document summarizes the categories of foreign portfolio investors (FPIs) and the eligibility criteria for registration as an FPI. It outlines three categories of FPIs - Category I includes foreign government-related entities, Category II includes regulated foreign banks and funds, and Category III includes other foreign investors not covered in Categories I and II. It also describes the types of instruments FPIs can invest in in India, such as listed shares, government securities, and corporate debt. The document notes that FPI regulations prohibit investment in unlisted shares but allow existing holdings to be maintained. It concludes by listing the eligibility criteria an applicant must meet for FPI registration, including experience, competence, reputation, and being from a country with
Foreign portfolio investments in indiashwetaghag18
- Foreign portfolio investment in India has increased significantly since the early 1990s when regulations were changed to encourage foreign investment. Total FPI grew from $1.6 billion in 1993-94 to over $127 billion by December 2011.
- The composition of FPI has changed over time, with investment from foreign institutional investors (FIIs) like pension funds and mutual funds becoming the dominant source of FPI, accounting for 75% of total FPI in 2007-08.
- FPI has impacts on the Indian economy through effects on the stock market, currency exchange rates, and inflation levels.
Foreign portfolio investment (FPI) refers to foreign investments in Indian stocks, bonds, and mutual funds. Since 1992, India has opened up to FPI inflows which have provided a large source of non-debt creating private capital. FPI can help fill capital needs in developing countries and influence domestic markets. However, irregularities and lack of protections have caused declines as FPI becomes less active and domestic investors withdraw from markets. Proper regulations aim to balance attracting investment while controlling volatility.
This document compares ECGC and its competitors in providing export credit insurance. It discusses the need for export credit insurance to protect exporters against risks. It identifies ECGC's major competitors and compares them across key parameters like risk coverage, exclusions, payment modes, countries covered, coverage percentages, premium calculation, and bank assistance. ECGC provides the most comprehensive risk coverage, covers the most countries, and is the only competitor that provides insurance covers to banks to enable exporters to obtain better financing. However, it also notes ECGC's weakness in communication which could become a threat if not addressed.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
The document discusses increasing foreign direct investment (FDI) in India's defense sector from 26% to 49%. It notes that defense is capital intensive and needs latest technologies. Raising the FDI cap would provide greater incentives for foreign investors to transfer technologies while still allowing majority Indian ownership. Some concerns around control and technology transfer are addressed, arguing that global companies will still need to follow origin country rules and see India as a major market. The conclusion is that increasing FDI could substantially boost investment and help develop India's indigenous defense capabilities.
Owned by Government of India, was set up in 1957
Functions under the administrative control of Ministry of Commerce & Industry
Managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community
The presentation deals with the Export Credit Guarantee Corporation of India, Includes..
1.Introduction
2.Evolution
3. Roles
4. Functions
5. Present scenario
6. Last 3 years Financial Performance
7. Major Services Offered
8. Strength, Weakness, Opportunities, Threat(SWOT) Analysis
9. Conclusion
Foreign institutional investors (FIIs) play an important role in the development of the Indian economy. FIIs invest large amounts of capital in Indian stock markets, which enhances equity capital flows and financial development. However, large FII inflows can also lead to inflation, currency appreciation that hurts exports, and volatility from "hot money" that moves in and out of the country quickly. While FIIs have improved stock market infrastructure and corporate governance, they also have significant influence over stock prices that can disadvantage small retail investors. Regulations have been established to manage FII investment in India.
The document discusses foreign portfolio investment (FPI) in Pakistan from 2001-2011. It analyzes how FPI increases liquidity and foreign reserves, induces new investment, and encourages existing businesses to expand. FPI lowers the cost of capital by making markets more liquid and efficient. While FPI provides benefits, Pakistan needs stronger efforts to attract domestic and foreign investment by improving stability, reducing bureaucracy, and developing infrastructure to strengthen investor perceptions. The analysis concludes that overall, FPI brings net benefits by integrating Pakistan's economy globally and transferring technology and skills.
FPI refers to investment made by entities located outside of the country in which the investment is being made. This includes purchases of stocks, bonds, and other financial assets. FPI provides benefits like increased capital flows and market efficiency, but also risks from volatility and short-term shifts. An optimal FPI portfolio balances risk and return on a global scale through geographic diversification. Regulations in India govern the scope and limits of FPI, FIIs, NRIs/PIOs, and foreign venture capital. Key differences between FDI and FPI are that FDI involves long-term ownership of physical assets while FPI represents short-term ownership of financial instruments.
The document describes Equity Market Analyser, an online platform that provides customized market analytics and investment recommendations to portfolio managers, traders, and analysts. It taps multiple online sources to deliver up-to-date market data and filters the information using models. Feedback from a survey showed most users are individual investors who prefer accessing the tool for free or via low usage fees and want information on technical analysis, news, and financial reports. The goal is to create an adaptive platform that highlights investment risks and opportunities.
The document discusses cost analysis of research projects. It outlines various cost components including raw materials, procedures, instrumentation, and clinical trials. It defines key cost terms and describes techniques for cost analysis. The major costs in a research project are raw materials, equipment, procedures to be followed, instrumentation required, and clinical trials. Effective cost management is important for project planning and resource allocation.
Equity Financing in Infrastructure Sector in IndiaMayank Mohan
This document discusses equity financing for infrastructure projects in India. It notes that equity financing makes up only 6% of total infrastructure financing. Various sources of equity are discussed, including promoter equity, private equity funds, and tiered equity structures using special purpose vehicles. Recommendations are made to increase equity funding, such as liberalizing buyback regulations and improving foreign institutional investor participation. Issues facing infrastructure holding companies in accessing financing are also outlined.
This document discusses women in business and entrepreneurship. It provides statistics showing that while the number of women on corporate boards and as entrepreneurs is rising, women still only make up a small percentage. For example, only 14.7% of Fortune 500 board seats are held by women, increasing at half a percent per year. As entrepreneurs, women range from 1.5-45.4% of the adult female population in different countries. The document also notes that women face various barriers in business, such as responsibility at home, lack of education and training, and discrimination. However, it highlights several successful women entrepreneurs in India who have overcome these challenges to build large, influential companies.
This document discusses the history and current state of women in business in Germany and Russia. It outlines the challenges women have faced over time in gaining rights and access to business opportunities. Some key points include:
- Women's rights have expanded since the 19th century with things like the right to vote being adopted in some places in the late 1800s.
- Today in Germany, conservative attitudes still exist where the roles of women are seen as family focused rather than having a career. Quotas have been adopted to increase women in leadership.
- In Russia, the current situation and laws regarding women in business are not described in detail.
- Women's business clubs have formed starting in the 1820s to support each
Cost analysis is an important part of project management. It involves reviewing project costs, evaluating cost elements, and ensuring costs are reasonable and necessary. Key aspects of cost analysis include verifying cost data, analyzing cost trends, evaluating the necessity of costs, and comparing costs to actual past costs and other estimates. Clinical trials are a major cost and involve expenses for manufacturing, staff, payments to sites and researchers, and materials. Instrumentation costs depend on equipment size and material. Raw material costs are based on material balances and unit prices. Effective project cost management can help reduce stress, prioritize goals, drive efficiency, and increase accountability.
The document discusses women entrepreneurship in India. It defines women entrepreneurs and their characteristics, including being imaginative, hard working, and able to take risks. It outlines the importance of promoting women entrepreneurs for economic and social development. Common reasons women become entrepreneurs include a desire for independence, confidence, and freedom. The document also discusses challenges faced by women entrepreneurs in India as well as government and private support programs available.
The document discusses women empowerment, defining it as challenging patriarchal ideology and male dominance. It is the process of changing systematic forces that marginalize women. Empowerment involves decision-making power, access to resources, options/choices, assertiveness, positive thinking, skill development, changing others' perceptions, involvement in growth/changes, and positive self-image. It discusses crimes against women, pre-requisites for empowerment, facilitating/constraining factors, advantages, rights of women, and legislative acts supporting empowerment in India like quotas and laws against violence and discrimination. It also outlines government programs and policies aimed at economic, social, political, cultural, and educational empowerment of women.
This document provides a business plan for a Dosa restaurant. It outlines objectives to keep food costs below 35% of revenue and expand marketing. The plan details the restaurant's mission to provide excellent food and service. It will feature indoor and outdoor seating with a unique Indian design. The menu will focus on dosas and other South Indian cuisine. The plan analyzes the target market and identifies competitors. It proposes strategies for marketing, sales, management, hiring staff, and financial projections.
Depository receipts represent ownership of shares in a foreign company that are held in trust by a domestic bank. There are three main types: American Depository Receipts (ADRs), which are issued and traded in the US; Global Depository Receipts (GDRs), which are issued and traded elsewhere; and Indian Depository Receipts (IDRs), which allow foreign companies to raise capital from the Indian market. ADRs/GDRs provide foreign companies access to international investors and capital markets. There are different levels of ADRs with increasing regulatory requirements associated with higher levels that provide greater visibility and trading opportunities in US markets. IDRs similarly allow Indian investors to invest in foreign companies.
American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and Foreign Currency Convertible Bonds (FCCBs) allow Indian companies to raise capital from foreign markets. ADRs/GDRs represent shares of an Indian company trading on a foreign stock exchange. FCCBs are bonds issued in foreign currency that are convertible into shares. Key benefits include increased visibility, flexibility to list abroad, and diversifying investor base. Key risks include currency exchange rate fluctuations and lack of familiarity with foreign markets. Regulatory approvals from SEBI, RBI, and relevant foreign authorities are required for issuing these instruments.
External / Overseas sources of funds for MNCs by Anshika SinghAnshikaSingh141
MNCs require a lot of external sources of funding for their long term capital requirements.
International fund raising used to be the domain of multinational companies. MNCs not only source raw material across the world or sell products at many geographical regions, they are also scouting for capital all over the world and raise capital where it is cheaper. However with globalization and increased cross-border capital flows, smaller companies are enjoying the benefits of raising capital in the international market.
Here we would like to dwelve deeper into the different sources of funds of finance used by Multinational companies for their working capital and long term capital requirements.
The sources of finance researched are American Depository Receipts, Global Depository Receipts, Samurai bonds and Masala Bonds.
Foreign portfolio investment (FPI) refers to foreign investments in Indian stocks, bonds, and mutual funds. Since 1992, India has opened up to FPI inflows which have provided a large source of non-debt creating private capital. FPI can help fill capital needs in developing countries and influence domestic markets. However, irregularities and lack of protections have caused declines as FPI becomes less active and domestic investors withdraw from markets. Proper regulations aim to balance attracting investment while controlling volatility.
This document compares ECGC and its competitors in providing export credit insurance. It discusses the need for export credit insurance to protect exporters against risks. It identifies ECGC's major competitors and compares them across key parameters like risk coverage, exclusions, payment modes, countries covered, coverage percentages, premium calculation, and bank assistance. ECGC provides the most comprehensive risk coverage, covers the most countries, and is the only competitor that provides insurance covers to banks to enable exporters to obtain better financing. However, it also notes ECGC's weakness in communication which could become a threat if not addressed.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
The document discusses increasing foreign direct investment (FDI) in India's defense sector from 26% to 49%. It notes that defense is capital intensive and needs latest technologies. Raising the FDI cap would provide greater incentives for foreign investors to transfer technologies while still allowing majority Indian ownership. Some concerns around control and technology transfer are addressed, arguing that global companies will still need to follow origin country rules and see India as a major market. The conclusion is that increasing FDI could substantially boost investment and help develop India's indigenous defense capabilities.
Owned by Government of India, was set up in 1957
Functions under the administrative control of Ministry of Commerce & Industry
Managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community
The presentation deals with the Export Credit Guarantee Corporation of India, Includes..
1.Introduction
2.Evolution
3. Roles
4. Functions
5. Present scenario
6. Last 3 years Financial Performance
7. Major Services Offered
8. Strength, Weakness, Opportunities, Threat(SWOT) Analysis
9. Conclusion
Foreign institutional investors (FIIs) play an important role in the development of the Indian economy. FIIs invest large amounts of capital in Indian stock markets, which enhances equity capital flows and financial development. However, large FII inflows can also lead to inflation, currency appreciation that hurts exports, and volatility from "hot money" that moves in and out of the country quickly. While FIIs have improved stock market infrastructure and corporate governance, they also have significant influence over stock prices that can disadvantage small retail investors. Regulations have been established to manage FII investment in India.
The document discusses foreign portfolio investment (FPI) in Pakistan from 2001-2011. It analyzes how FPI increases liquidity and foreign reserves, induces new investment, and encourages existing businesses to expand. FPI lowers the cost of capital by making markets more liquid and efficient. While FPI provides benefits, Pakistan needs stronger efforts to attract domestic and foreign investment by improving stability, reducing bureaucracy, and developing infrastructure to strengthen investor perceptions. The analysis concludes that overall, FPI brings net benefits by integrating Pakistan's economy globally and transferring technology and skills.
FPI refers to investment made by entities located outside of the country in which the investment is being made. This includes purchases of stocks, bonds, and other financial assets. FPI provides benefits like increased capital flows and market efficiency, but also risks from volatility and short-term shifts. An optimal FPI portfolio balances risk and return on a global scale through geographic diversification. Regulations in India govern the scope and limits of FPI, FIIs, NRIs/PIOs, and foreign venture capital. Key differences between FDI and FPI are that FDI involves long-term ownership of physical assets while FPI represents short-term ownership of financial instruments.
The document describes Equity Market Analyser, an online platform that provides customized market analytics and investment recommendations to portfolio managers, traders, and analysts. It taps multiple online sources to deliver up-to-date market data and filters the information using models. Feedback from a survey showed most users are individual investors who prefer accessing the tool for free or via low usage fees and want information on technical analysis, news, and financial reports. The goal is to create an adaptive platform that highlights investment risks and opportunities.
The document discusses cost analysis of research projects. It outlines various cost components including raw materials, procedures, instrumentation, and clinical trials. It defines key cost terms and describes techniques for cost analysis. The major costs in a research project are raw materials, equipment, procedures to be followed, instrumentation required, and clinical trials. Effective cost management is important for project planning and resource allocation.
Equity Financing in Infrastructure Sector in IndiaMayank Mohan
This document discusses equity financing for infrastructure projects in India. It notes that equity financing makes up only 6% of total infrastructure financing. Various sources of equity are discussed, including promoter equity, private equity funds, and tiered equity structures using special purpose vehicles. Recommendations are made to increase equity funding, such as liberalizing buyback regulations and improving foreign institutional investor participation. Issues facing infrastructure holding companies in accessing financing are also outlined.
This document discusses women in business and entrepreneurship. It provides statistics showing that while the number of women on corporate boards and as entrepreneurs is rising, women still only make up a small percentage. For example, only 14.7% of Fortune 500 board seats are held by women, increasing at half a percent per year. As entrepreneurs, women range from 1.5-45.4% of the adult female population in different countries. The document also notes that women face various barriers in business, such as responsibility at home, lack of education and training, and discrimination. However, it highlights several successful women entrepreneurs in India who have overcome these challenges to build large, influential companies.
This document discusses the history and current state of women in business in Germany and Russia. It outlines the challenges women have faced over time in gaining rights and access to business opportunities. Some key points include:
- Women's rights have expanded since the 19th century with things like the right to vote being adopted in some places in the late 1800s.
- Today in Germany, conservative attitudes still exist where the roles of women are seen as family focused rather than having a career. Quotas have been adopted to increase women in leadership.
- In Russia, the current situation and laws regarding women in business are not described in detail.
- Women's business clubs have formed starting in the 1820s to support each
Cost analysis is an important part of project management. It involves reviewing project costs, evaluating cost elements, and ensuring costs are reasonable and necessary. Key aspects of cost analysis include verifying cost data, analyzing cost trends, evaluating the necessity of costs, and comparing costs to actual past costs and other estimates. Clinical trials are a major cost and involve expenses for manufacturing, staff, payments to sites and researchers, and materials. Instrumentation costs depend on equipment size and material. Raw material costs are based on material balances and unit prices. Effective project cost management can help reduce stress, prioritize goals, drive efficiency, and increase accountability.
The document discusses women entrepreneurship in India. It defines women entrepreneurs and their characteristics, including being imaginative, hard working, and able to take risks. It outlines the importance of promoting women entrepreneurs for economic and social development. Common reasons women become entrepreneurs include a desire for independence, confidence, and freedom. The document also discusses challenges faced by women entrepreneurs in India as well as government and private support programs available.
The document discusses women empowerment, defining it as challenging patriarchal ideology and male dominance. It is the process of changing systematic forces that marginalize women. Empowerment involves decision-making power, access to resources, options/choices, assertiveness, positive thinking, skill development, changing others' perceptions, involvement in growth/changes, and positive self-image. It discusses crimes against women, pre-requisites for empowerment, facilitating/constraining factors, advantages, rights of women, and legislative acts supporting empowerment in India like quotas and laws against violence and discrimination. It also outlines government programs and policies aimed at economic, social, political, cultural, and educational empowerment of women.
This document provides a business plan for a Dosa restaurant. It outlines objectives to keep food costs below 35% of revenue and expand marketing. The plan details the restaurant's mission to provide excellent food and service. It will feature indoor and outdoor seating with a unique Indian design. The menu will focus on dosas and other South Indian cuisine. The plan analyzes the target market and identifies competitors. It proposes strategies for marketing, sales, management, hiring staff, and financial projections.
Depository receipts represent ownership of shares in a foreign company that are held in trust by a domestic bank. There are three main types: American Depository Receipts (ADRs), which are issued and traded in the US; Global Depository Receipts (GDRs), which are issued and traded elsewhere; and Indian Depository Receipts (IDRs), which allow foreign companies to raise capital from the Indian market. ADRs/GDRs provide foreign companies access to international investors and capital markets. There are different levels of ADRs with increasing regulatory requirements associated with higher levels that provide greater visibility and trading opportunities in US markets. IDRs similarly allow Indian investors to invest in foreign companies.
American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and Foreign Currency Convertible Bonds (FCCBs) allow Indian companies to raise capital from foreign markets. ADRs/GDRs represent shares of an Indian company trading on a foreign stock exchange. FCCBs are bonds issued in foreign currency that are convertible into shares. Key benefits include increased visibility, flexibility to list abroad, and diversifying investor base. Key risks include currency exchange rate fluctuations and lack of familiarity with foreign markets. Regulatory approvals from SEBI, RBI, and relevant foreign authorities are required for issuing these instruments.
External / Overseas sources of funds for MNCs by Anshika SinghAnshikaSingh141
MNCs require a lot of external sources of funding for their long term capital requirements.
International fund raising used to be the domain of multinational companies. MNCs not only source raw material across the world or sell products at many geographical regions, they are also scouting for capital all over the world and raise capital where it is cheaper. However with globalization and increased cross-border capital flows, smaller companies are enjoying the benefits of raising capital in the international market.
Here we would like to dwelve deeper into the different sources of funds of finance used by Multinational companies for their working capital and long term capital requirements.
The sources of finance researched are American Depository Receipts, Global Depository Receipts, Samurai bonds and Masala Bonds.
This document discusses raising equity capital through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). It defines ADRs and GDRs as negotiable instruments that allow investors to hold shares in foreign companies. The document then covers who can issue ADRs/GDRs, the different types of ADR programs, the process for issuance, how pricing works, advantages and disadvantages, and examples of Indian companies that have issued ADRs/GDRs.
American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) allow investors to easily invest in foreign companies. ADRs represent shares of a foreign company that trade on American stock exchanges, while GDRs represent shares of a foreign company that trade on exchanges outside of the US. Both ADRs and GDRs provide foreign companies access to global capital markets while reducing costs and complexities for international investors. Key differences are that ADRs trade in the US and GDRs trade elsewhere, with many large Indian companies issuing both types of receipts to attract global investment.
Overseas sources of finance for Indian corporate Sanika Yadav
The document discusses various overseas sources of finance available to Indian corporations, including international equity markets like ADRs and GDRs, international bond markets like Yankee bonds and Samurai bonds, INR denominated bonds known as Masala bonds, and external commercial borrowings. It provides details on each of these financing options, such as what they are, how they work, their advantages and disadvantages. It also lists some examples of Indian companies that have utilized these overseas financing sources and the trends of issuances over time.
Overseas sources of finance for indian corporateshoax11
I have been working on some of my college assignments, and I made this fine report on "Overseas sources of funds for Indian Corporates, and why Corporates lusts for those sources". Please read, review, and give your feedback.
Review of Overseas Sources of Finance for Indian CorporateNikitaTiloomalani
This document discusses two main overseas sources of finance for Indian corporations: American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). It explains that ADRs allow Indian companies to raise funds on the US stock exchange by issuing shares that trade similarly to US stocks. GDRs function similarly but allow companies to access international capital markets. The document provides details on the procedures for issuing and trading both ADRs and GDRs, and how they allow foreign investors to invest in Indian companies.
This document provides an overview of American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). It defines ADRs and GDRs, describes the process for issuing them, and outlines their key advantages. It also differentiates between types of ADRs/GDRs, levels of ADR programs, and provides examples of Indian companies that have issued ADRs and GDRs.
GDR stands for Global Depository Receipt. It is a financial instrument that allows a company to raise capital from the international market. The first Pakistani company to issue GDRs was Pakistan Telecommunication in 1994. GDRs provide advantages to both issuers and investors. For issuers, they provide exposure in international markets and access to wealthier foreign investors. For investors, GDRs provide easy access to international stocks and reduce costs and taxes associated with foreign transactions. GDRs are issued and traded similarly to common stocks but involve local brokers, custodians and international depositories to handle cross-border transactions.
The chapter comprises of Meaning, Environment, Raising of Finance in International Markets, Euro Issues, GDRs and ADRs Guidelines for Raising Funds in International Markets through various Instruments; Working of International Stock Exchanges with respect to their Size - Listing Requirements, Membership, Clearing and Settlement of New York Stock Exchange, NASDAQ, London Stock Exchange, Tokyo Stock Exchange, Luxembourg Stock Exchange, German and France Stock Exchanges.
The international stock market refers to all the international markets that negotiate stocks from their domestic companies. For example, you can buy stocks from Apple at the local American market, but to get stocks from the Japanese Sapporo, you need to go the international (Japanese) market. Most countries have their own stock exchange.
Part of the financial system concerned with raising long-term capital through shares, bonds, and other long-term investments.
EURO ISSUE:
The term `euro' denotes that the issue is listed on a European Stock Exchange.
A euro issue is a issue where the securities are issued in a currency different from the currency of the country of issue and the securities are sold in international market to individual and institutional investors.
Euro securities are negotiable and transferable securities distributed by a syndicate of market intermediaries and underwriters, By an euro issue, a company is able to raise funds at a cheaper rate, Euro bond is an international bond issued to investors from throughout the world.
A global depositary receipt (GDR) is a certificate issued by a bank that represents shares in a foreign stock on two or more global markets. GDRs typically trade on American stock exchanges as well as Eurozone or Asian exchanges.
GDRs represent ownership of an underlying number of shares of a foreign company and are commonly used to invest in companies from developing or emerging markets by investors in developed markets.
Prices of global depositary receipt are based on the values of related shares, but they are traded and settled independently of the underlying share.
ADR's are depository receipts issued in United States of America (USA) in accordance with the provisions of Securities and Exchange Commission.
American Depository Receipts (ADRs) offer US investors a means to gain investment exposure to non-US stocks without the complexities of dealing in foreign stock markets.
It refers to a negotiable certificate issued by a U.S. depositary bank representing a specified number of shares usually one share of a foreign company's stock.
The ADR trades on U.S. stock markets as any domestic shares would. ADRs offer U.S. investors a way to purchase stock in overseas companies that would not otherwise be available.
It is denominated in US $
INFOSYS Technologies was the First Indian Company to issue ADR.
The document discusses various types of depository receipts (DRs) such as American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). It explains that a DR allows investors to hold shares of foreign companies that trade on a local exchange. The document outlines the key parties involved in issuing DRs, including the issuer, depository, custodian bank and underwriters. It also describes the approval process for issuing DRs and the ongoing roles and responsibilities of each party.
A depository receipt (DR) represents shares of a foreign company that are held in trust by a local custodian bank and traded on a local stock exchange. There are several types of DRs including American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and Indian Depository Receipts (IDRs). DRs allow foreign companies to raise capital and list their shares indirectly on foreign exchanges to avoid stringent listing requirements.
American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) allow investors to invest in foreign companies. ADRs represent shares of a foreign company trading on a U.S. exchange, while GDRs represent shares trading on exchanges outside the U.S. Both are negotiable certificates issued by a bank that represent ownership of shares deposited in a foreign company. ADRs and GDRs make it easier for investors to purchase foreign companies, avoid costs and taxes associated with cross-border transactions, and provide liquidity as they trade independently of the underlying shares. However, ADRs and GDRs also expose investors to currency risk as their value fluctuates with exchange rates.
This document provides information about various topics related to the stock market and finance. It includes:
1. A list of group members and their roll numbers working on a project guided by Mr. Manoj Bhatia.
2. Descriptions and definitions of key stock market terms - including the stock exchange, shares, stocks, bonds, and types of investors.
3. Details about the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE), including their locations, founding dates, indexes, and daily trading schedules.
4. Explanations of other financial concepts - such as market capitalization, indexes, credit ratings, demat accounts, and initial public offerings (I
Depositary receipts (DRs) like American depositary receipts (ADRs) and global depositary receipts (GDRs) allow foreign companies to list shares on an exchange outside their home country. ADRs trade on US exchanges and represent ownership of shares in a foreign company, while GDRs trade internationally. DRs offer benefits to both companies raising capital abroad and international investors, including exposure to foreign markets in familiar terms. Companies issuing DRs must comply with regulations of the foreign market and designate depositary banks and custodians to facilitate the issuance and trading of the receipts.
Indian companies are increasingly raising funds from overseas sources such as foreign banks, multilateral institutions, and international capital markets. There are multiple sources of overseas finance for Indian corporates including equity instruments like American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), as well as debt instruments denominated in foreign currencies like US dollar-denominated Yankee bonds and Japanese yen-denominated Samurai bonds. While overseas financing provides benefits like lower interest rates, it also exposes companies to risks related to foreign exchange rates and the economic conditions in other countries. Strict regulations apply to overseas bond issuances to protect investors.
Indian Depository Receipts (IDRs) allow foreign companies to raise capital from the Indian market. IDRs represent shares of a non-Indian company and are issued by a domestic depository in India. The first IDR issuance was in 2010 by Standard Chartered Bank, which raised Rs. 2490 crore. While IDRs provide benefits like access to the Indian market, there are also challenges like tax treatment and lack of fungibility between IDRs and underlying shares. The legal framework for IDRs needs further improvements to realize their full potential.
This presentation discusses depository receipts, which allow investors to hold shares in foreign companies. There are three main types: American Depository Receipts (ADR), which trade on US exchanges; Global Depository Receipts (GDR), which trade on European exchanges; and Indian Depository Receipts (IDR), which trade on Indian exchanges. The presentation provides details on the process for issuing and trading depository receipts and lists several major Indian companies that have ADRs and/or GDRs. It explains that IDRs provide benefits like increased access to capital and global visibility for companies while allowing foreign companies opportunities to raise funds for Indian business needs.
Similar to Raising equity in the us market - ADR issue (20)
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Independent Study - College of Wooster Research (2023-2024)
Raising equity in the us market - ADR issue
1. Raising Equity in the US market
(ADR issue)
An International Finance Project by:
Group 12
Aakanksha Varude 01
Ashutosh Phadke 10
Surbhi Parekh 47
Vipul Bajaj 56
2. Scope of the Presentation
What are ADRs?
Types of ADR
Levels of ADR
Who can issue an ADR?
Process to issue an ADR
ADRs: HDFC Bank
Advantages & Disadvantages of ADRs
Conclusion
6. ADRs were introduced in 1927
First ADR introduced by JP
Morgan of British retailer
Selfridges
Currently more than 2000
company ADRs are available
NYSE: Reliance Industries listed in
1992
NASDAQ: Infosys Technologies
listed in 1999
8. Sponsored ADRs Unsponsored ADRs
Issued with cooperation of the
company whose stock will underlie the
ADR
Issued by broker/dealer or depository
bank without the involvement of
company whose stock underlies the
ADR
Comply with regulatory reporting No regulatory reporting
Listing on international Stock Exchanges
allowed
Trade on OTC market
10. Level 1
• Foreign companies not
listed on an exchange
• Traded only on the OTC
market
• Minimal reporting
requirements
Level 2
• ADR is listed on an
exchange
• Must file a registration
statement with the SEC
• Higher visibility
Level 3
• Floating a public
offering of ADRs on the
exchange
• ADRs are able to raise
huge capital
12. Issued by a Depository
abroad & listed on the
overseas stock
exchanges
FEMA allows an Indian
company to issue its
rupee denominated
shares to a person
resident outside India
Issued in accordance
with Ordinary Shares
Scheme (1993) &
guidelines issued by
the Ministry of Finance
15. List of Indian Companies in ADR Market
S.No. Company Ticker Exchange/M
arket
Ratio
ADR:ORD
Country Industry
1 Dr. Reddy's Laboratories RDY NYSE 1:1 India Pharma. & Biotech.
2 HDFC Bank HDB NYSE 1:3 India Banks
3 ICICI Bank IBN NYSE 1:2 India Banks
4 Infosys INFY NYSE 1:1 India Software&ComputerSvc
5 Rediff.com India REDF NASDAQ 2:1 India Software&ComputerSvc
6 Sesa Sterlite SSLT NYSE 1:4 India Construct.&Materials
7 SIFY SIFY NASDAQ 1:1 India Software&ComputerSvc
8 Tata Motors TTM NYSE 1:5 India Industrial Engineer.
9 Wipro WIT NYSE 1:1 India Software&ComputerSvc
10 WNS Holdings WNS NYSE 1:1 India Support Services
11 Grasim Industries GRSXY OTC 1:1 India Construct.&Materials
12 Mahanagar Telephone Nigam MTENY OTC 1:2 India Fixed Line Telecom.
17. On February 6, 2015 HDFC Bank has raised Rs 10,000 crore
through a domestic equity offer and an American Depository
Receipt (ADR) issue in the US
The shares were offered at the price of Rs. 1,067 a share
The bank offered 22 million ADRs in the US, raising another
Rs. 8,000 crores
The $1.27 billion ADR offering, which is the biggest US share sale
by an Indian company since 2009, was priced at $56.76 per ADR.
20. Issuer’s point of
view
Investor’s point of
view
Easy and cost effective
way to invest in foreign
companies
Arbitrage opportunity
More transparency and
stability, freely transferrable
Two way fungibility,
reduces administrative costs
and avoids foreign taxes on
transactions
Easy access to the
developed market
Enhance company’s
visibility, status and profile
internationally
To tap into the wealthy
American Equity Markets
DR holders do not have
any voting right
22. Violating the regulations & requirements of SEC leads to de-listing from U.S
Stock exchange
Foreign exchange risk i.e. currency of issuer is different from currency of DR
ADR issued companies have to pay high managing and annual fees
Political risk
24. There is a huge scope for good performing
Indian companies to raise funds through
ADRs
Currently no Indian Companies are going
for raising funds through ADR, because of
instability in currency, interest rates and
other macro factors
Once an ADR is priced and sold on the
market, its price is determined by supply
and demand, just like an ordinary stock
Raising Equity through ADR will generate
more volume and higher safety for the
company to withstand its value globally
More and more companies are cross
listing shares thus broadening the
international equity market
Indian mutual fund can convert its ADR
holdings to domestic shares and sell it in
the domestic market, increasing arbitrage
opportunity
Editor's Notes
DRs: It is a negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities
ADRs:
It is a negotiable security representing securities of a non-US company trading in the US financial markets
It is denominated in US dollars and may be traded like regular shares of stock
Each ADR represents a specific number of shares (one or more) in a foreign corporation
ADRs are traded on NYSE, NASDAQ and AMEX in the United States
Because of complexity involved in buying and trading of shares if foreign countries and its differing currencies; ADRS were introduced in the financial market in the year 1927
US banks (acting as depositories) simply purchase a bulk lot of shares from the foreign company
There are more than 2,000 ADRs available representing shares of companies located in more than 70 countries
Reliance Industries was the first Indian company to be listed on NYSE in 1992 and Infosys Technologies was the first Indian company to be listed on NASDAQ in 1999
ADR is 1:3, so it gives Arbitrage option
Value of Share in US market is $60.56
And in BSE Market it is Rs. 1050.30,
If the investor trades in the US market and converts it using the cross-border transaction where by giving the chance to the local investor to earn the value.
Intra-Market vs. Cross-Border Transactions
Suppose an investor who is holding Depository Receipts wishes to sell them. The investor has to first notify his broker. The broker can either sell the Depository Receipts in the US market through an intra-market transaction where the Depository Receipts are sold to subsequent US investors by transferring them from the existing holder (who is now the seller) to the new holder (who is the buyer). Intra-market trading accounts for approximately 95% of all Depository Receipt trading. The investor can also sell the shares back into the home market through a cross-border transaction. In this case, the US broker surrenders the Depository Receipts to the depository bank, so as to deliver the shares to a buyer in the home market. The depository bank cancels the Depository Receipt and instructs the custodian to release the underlying shares and delivers them to the local broker. The Indian broker pays for
them in equivalent Rupees that are converted into dollars by the US broker.
Political risk – In order the company to issue ADR for generating equity must be aware of its government stability
Forex risk – ADR shares track the shares in the home country, devaluation of home currency can trigger down the ADR creating a big loss to the company