FOREIGN CAPITAL ISSUANCE
Indian companies are allowed to raise equity capital in the international market through the issue of GDR/ADRs/FCCBs.
Global Depository Receipts (GDR)
American Deposit Receipts (ADR)
Foreign Currency Convertible Bonds (FCCB)
American Depository Receipt
An American Depositary Receipt ("ADR") is a physical certificate proof ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves. The stock of many non-US companies trades on US exchanges through the use of ADRs.
Global Depository Receipts
Global Depository Receipt (GDR) - certificate issued by international bank, which can be subject of worldwide circulation on capital markets and to raise capital simultaneously in two or markets through a global offering. GDRs may be used in public or private markets inside or outside US. GDR, a negotiable certificate usually represents company’s traded equity/debt. Prices of GDRs are often close to values of related shares, but they are traded and settled independently of the underlying share, Normally 1 GDR = 10 Shares.