1.  A negotiable certificate issued by a U.S. bank
 Represents a specified number of shares of a
foreign company
 ADRs are denominated in U.S. dollars

2.  It is an easy and cost effective way to buy
shares of a foreign company
 Reduces administrative costs and avoids
foreign taxes on every transaction
 Helps companies which are listed to tap the
American equity markets

3.  Any foreigner can purchase these securities
 The purchaser has a theoretical right to
exchange shares ( non-voting right shares for
voting rights)

4.  A bank certificate issued in more than one
country for shares in a foreign company
 Offered for sale globally through the various
bank branches
 Shares trade as domestic shares

5.  GDRs allow investors to invest in foreign
companies without worrying about foreign
trading practices, laws
 Easier trading, payments of dividends are in
the GDR currency
 GDRs are liquid because they are based on
demand and supply whichis regulated by
creating or cancelling shares

6.  GDR issuance provides the company with
visibility, more larger and diverse shareholder
base and the ability to raise more capital
ininternational markets
 However, they have foreign exchange risk i.e.
currency of issuer isdifferent from currency of
GDR

7.  Both ADR and GDR are depository receipts,
and represent a claim on the underlying shares.
The only difference is the location where they
are traded.
 Depositary receipts traded in USA - ADR
 Depositary receipts traded in a country other
than USA -GDR

8.  ADRs and GDRs are an excellent means of
investment for NRIs andforeign nationals
wanting to invest in India.
 By buying these, they can invest directly in
Indian companies without going through the
hassle of understanding the rules and working
of the Indian financial market - since ADRs and
GDRs are traded like anyother stock

9.  NRIs and foreigners can buy these using their
regular equity trading accounts

10. Company ADR GDR
Bajaj Auto No Yes
Dr. Reddys Yes Yes
HDFC Bank Yes Yes
Hindalco No Yes
ICICI Bank Yes Yes
Infosys Technologies Yes Yes
ITC No Yes

11. Companies ADR GDR
L&T No Yes
MTNL Yes Yes
Patni Computers Yes No
Ranbaxy Laboratories No Yes
Tata Motors Yes No
State Bank of India No Yes
WIPRO Yes Yes