ADR & GDR

American depository receipt and Global depository receipt

1. PRESENTED BY: PRAVIN P. THOSAR ADR AND GDR

2. American depositary receipt Is a negotiable security that represents securities of a non-US company that trades in the US financial markets. Securities of a foreign company that are represented by an ADR are called American depositary shares.  ADRs are and pay dividends in US dollars and may be traded like regular shares of stock. The first ADR was introduced by J.P. Morgan in 1927 for the British retailer Selfridge.

3. Different types of programs: Unsponsored ADRs Sponsored Level I ADRs ("OTC" facility) Sponsored Level II ADRs ("Listing" facility) Sponsored Level III ADRs ("offering" facility)

4. Global depository receipt   Is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account.  GDRs represent ownership of an underlying number of shares. commonly used to invest in companies from developing or emerging markets. JPMorgan Chase,Citigroup, Deutsche Bank, The Bank of New York Mellon.  

5. Often listed in the Frankfurt Stock Exchange, Luxembourg Stock Exchange and in the London Stock Exchange.  It is a negotiable instrument which is denominated in some freely convertible currency.   It is a negotiable certificate denominated in US dollars which represents a non-US Company's publicly traded local equity.

6. characteristics of GDRs 1. It is an unsecured security. 2. A fixed rate of interest is paid on it 3. It may be converted into number of shares 4. Interest and redemption price is public in foreign agency. 5. It is listed and traded in the share market

7. ADR Prices Company Close (USD) ICICI Bank Ltd. 32.64 HDFC Bank Ltd. 31.48 Infosys Ltd. 57.08 Wipro Ltd. 12.69 Tata Motors Ltd. 27.80 Sesa Sterlite Ltd. 11.90 Dr. Reddy's Laboratories Ltd. 42.17

8. GDR Prices Company Close (USD) GAIL (India) Ltd. 34.25 Axis Bank Ltd. 18.19 Mahindra & Mahindra Ltd. 13.71 State Bank of India 48.44 Reliance Industries Ltd. 26.40 Ranbaxy Laboratories Ltd. 4.97 Larsen & Toubro Ltd. 15.64

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