What is Global Depository Receipts?

Global Depository Receipts (GDRs) are financial instruments that represent shares in a foreign company and are traded on international stock exchanges. They are a way for companies to raise capital from investors outside their home country and provide international investors with an indirect way to invest in foreign companies without directly owning the underlying shares. GDRs have become an essential tool for global capital markets, allowing companies to access a broader and more diverse investor base.

Here are some key aspects of Global Depository Receipts:

1. Structure and Process:

   • A foreign company looking to raise capital through GDRs typically engages a depository bank, often based in a major financial center such as London, New York, or Singapore.
   • The depository bank purchases the company's shares __________ _____ _____ ___ _________ _____.
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