Question

GDRs can not be directly issued to foreign investors.

• A. True
• B. False

Answer 1

The correct option is A True

GDRs can not be directly issued to foreign investors- this is a true statement.GDR is a foreign currency denominated derivative instrument in the form of depository receipt created outside India and issued to non-resident investors. GDR stands for Global Depository Receipt. It is a bank certificate issued in more than one country for shares in a foreign company.