Multiple choice

What is an Indian Depository Receipt?

  1. A deposit account with a Public Sector Bank

  2. A depository account with any of the depositories in India

  3. An instrument in the form of depository receipt created by an Indian depository against underlying <font face="Arial" size="2">equity shares</font><font face="Arial" size="2"> of the issuing company</font>

  4. An instrument in the form of deposit receipt issued by Indian government

  5. None of these
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C Correct answer
Explanation

An Indian Depository Receipt (IDR) is a depository receipt created by an Indian depository against underlying equity shares of a foreign company. It allows foreign companies to raise capital from Indian investors while shares remain offshore.

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