Question : IDR stands for:
Option 1: Indian Depository Receipts
Option 2: International Dividend Receipts
Option 3: Indian Debt Reserve
Option 4: Institutional Disclosure Requirements
Correct Answer:
Indian Depository Receipts
Solution : The correct answer is (a) Indian Depository Receipts
IDR stands for Indian Depository Receipts. IDR is a financial instrument used in India to facilitate the investment in foreign companies by Indian investors. Similar to ADRs and GDRs, IDR represents shares of foreign companies that are traded in the Indian market. IDRs are issued by an Indian depository bank, allowing Indian investors to invest in foreign companies without directly purchasing the shares in the foreign market. The depository bank holds the underlying shares of the foreign company and issues IDR units, which are traded on Indian stock exchanges.
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