Question

Consider the following statements:
$1$. Indian Depository Receipt is an instrument denominated in Indian rupees in the form of a depository receipt created by the custodian of securities registered with the Securities and Exchange Board of India against the underlying equity of issuing company.
$2.$ Standard Chartered $PLC$ became the first global company to file for an issue of Indian depository receipts in India.
Which of the statements given above is/are correct?

• A. Only $1$
• B. Only $2$
• C. Both $1$ and $2$
• D. Neither $1$ nor $2$

Answer 1

The correct option is C Both $1$ and $2$

IDR stands for Indian Depository Receipts. As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. An IDR is a way for a foreign company to raise money in India. In an IDR, foreign companies would issue shares, to an Indian Depository, which would in turn issue depository receipts (IDR) to investors in India.

Standard Chartered PLC became the first global company to file for issue of IDRs in India.