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Accounting for Redemption of Debentures

is a foreign ...

Question

____ is a foreign currency denominated derivative instrument in the form of depository receipt created outside India and issued to non-resident investors.

A

IDR

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B

SDR

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C

GDR

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D

ADR

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Solution

The correct option is C GDR
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.

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Q. 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

P L C

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?

Q. The Reserve Bank of India (RBI) has recently raised currency derivative trade limit to how much amount for residents and foreign portfolio investors? [Feb 2018]

Q. 29. Choose the correct statement about Depository receipts (DR)
1. It let investors purchase shares in foreign companies.
2. The depositary receipt trades on a local stock exchange.
3. It is a negotiable financial instrument.
Correct answer code is

Q. American Depository Receipt (ADR) is a certified negotiable instrument issued by an American bank suggesting the number of shares of a foreign company that can be traded in U.S. financial markets.

A Global Depository Receipt is a bank certificate that is basically issued in more than one country for shares in a foreign company.

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