ADRs and GDRs
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Letter to Editor, Letter to Editor
The cover story in the recent issue gave me good insights into FPI's investments in India.
The cover story in the recent issue gave me good insights into FPI’s investments in India. I wanted to understand what is the difference between ADRs and GDRs? - Saksham T
Editor Responds: We appreciate your kind words of encouragement. American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) are both financial instruments that facilitate investment in foreign companies. ADRs are traded in the US and represent ownership in foreign companies, allowing American investors to access international markets without dealing with foreign exchanges. GDRs, on the other hand, are traded globally and cater to a broader investor base. They enable non-US investors to invest in foreign companies, often listed in European markets. While both ADRs and GDRs provide easier access to foreign investments, they differ in their geographical focus and regulatory requirements. ADRs adhere to US regulations, while GDRs follow the regulations of the country where they are issued. Keep writing to us