in which country are IDR issued
Answers
Answer:
An IDR is in Indian rupees and is created by a domestic depository (custodian of securities registered with SEBI (Securities and Exchange Board of India). It is issued against the underlying equity of the company to enable foreign companies to raise funds from the Indian securities Markets. As foreign companies are not allowed to list on Indian equity markets, IDR is a way to own shares of those companies. These IDRs could be listed on the Indian stock exchanges. Through the IDRs, you could directly invest money into international companies.
Explanation:
These are foreign companies that have subsidiaries working in India. Since these offshoots are not listed, the firms offer shares to Indian investors. Standard Chartered Plc is the first company to come out with an IDR issue.
Indian Depository Receipts are based on American Depository Receipts introduced in 1927. Securities and Exchange Board of India (SEBI) first operationalised the rules of IDRs. The Reserve Bank of India (RBI) issued operations under the Foreign Exchange Management Act.
The Indian depository receipts had their inception on the BSE and the NSE on June 11, 2010.