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Adr, GDR & Idr
Adr, GDR & Idr
Adr, GDR & Idr
PRESENTED BY:
Anupama P. S
185SM002
T. Vasudha
185SM022
TABLE OF CONTENTS
• DEPOSITORY RECEIPTS
• PROCESS TO ISSUE DR
• AMERICAN DEPOSITORY RECEIPTS (ADRs)
• ADVANTAGES & DISADVANTAGES OF ADR
• GLOBAL DEPOSITORY RECEIPTS (GDRs)
• ADVANTAGES & DISADVANTAGES OF GDR
• DIFFERENCE BETWEEN ADR & GDR
• EXAMPLES OF ADR & GDR
• INDIAN DEPOSITORY RECEIPTS (IDRs)
• REFERENCES
Depository receipts
Acknowledgement OVERSEAS
DOMESTIC of share deposits DEPOSITORY
CUSTODIAN BANK
American Depository Receipts
(ADRs)
• ADR is a dollar-denominated negotiable certificate.
• It represents a non-US company’s publicly traded equity.
• It was devised in the late 1920s to help Americans invest in
overseas securities and to assist non-US companies wishing to
have their stock traded in the American Markets.
• ADR were introduced as a result of the complexities involved
in buying shares in foreign countries and the difficulties
associated with trading at different prices and currency values.
Process to issue ADR
American
Overseas fund investor
Invest
Deposits shares
Money Acknowledgement
In $
Acknowledgement OVERSEAS
DOMESTIC of share deposits DEPOSITORY
CUSTODIAN BANK
Types of ADR