ADR & GDR

Presented by Jinisha Hirani Kanan Mehta Sanchita Naik Jatin Kambli

Presented to :- Prof. Shishir Asthana

S. dollars Shares of foreign company represented by ADR are called American depository Shares (ADS) ADS are traded just like the shares of any US domiciled company . banks Represents the underlying securities of a non.US company that trades in US financial markets ADRs are denominated in U.S.ADR A negotiable security issued by a U.

voting right shares for voting rights) .Advantages of ADR It is an easy and cost effective way to buy shares of a ‡ foreign company ‡ educes administrative costs and avoids foreign taxes on R every transaction Helps companies which are listed to tap the American equity markets ‡ Any foreigner can purchase these securities ‡ The purchaser has a theoretical right to exchange shares (non.

GDR Global Depositary Receipts A bank certificate issued in more than one country for shares in a foreign company Offered for sale globally through the various bank branches Shares trade as domestic shares .

more larger and G diverse shareholder base and the ability to raise more capital in international markets.Advantages & Dis-advantages  GDRs allow investors to invest in foreign companies without worrying about foreign trading practices. payments of dividends are in the GDR currency. . currency of issuer is different from currency of GD.  ‡ DR issuance provides the company with visibility.  ‡ DRs are liquid because they are based on demand and supply which G is regulated by creating or cancelling shares.  Easier trading. laws.  They have foreign exchange risk i.e.

.  ‡ epositary receipts traded in USA – ADR. and represent a claim on the underlying shares. The only difference is the location where they are traded.Difference between ADR & GDR  Both ADR and GDR are depository receipts. D  ‡ epositary receipts traded in a country other D than USA – GDR.

since ADRs and GDRs are traded like any other stock.  ‡ RIs and foreigners can buy these using their regular N equity trading account.ADR and GDR  ADRs and GDRs are an excellent means of investment for NRIs and foreign nationals wanting to invest in India.India. they can invest directly in Indian B companies without going through the hassle of understanding the rules and working of the Indian financial market . .  ‡ y buying these.

Reddys HDFC Bank Hindalco ICICI Bank Infosys Tecnologies ITC L&T MTNL Patni Computers Tata Motors State Bank of India Wipro ADR NO YES YES NO YES YES NO NO YES YES YES NO YES GDR YES YES YES YES YES YES YES YES YES NO NO YES YES .Indian Companies using ADR/GDR COMPANY Bajaj Auto Dr.

THANK YOU .

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