Multiple choice

What is an Indian Depository Receipt?

  1. A deposit account with a Public Sector Bank

  2. A depository account with any of depositories in India

  3. An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company

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

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An Indian Depository Receipt (IDR) is an instrument created by an Indian depository against underlying equity shares of a foreign company. It allows foreign companies to raise capital from Indian investors without directly listing on Indian exchanges. IDRs are similar to ADRs (American Depository Receipts) in the US market.

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