In which of the following Stock Exchanges the GDR’s are listed ? (i) London Stock Exchange (ii) New-York Stock Exchange (iii) Luxembourg Stock Exchange (iv) Bombay Stock Exchange (v) Singapore Stock Exchange (vi) Hong Kong Exchange Identify the correct combination :
(i), (iii), (v) and (vi)
A Global Depository Receipt (GDR) is a negotiable instrument issued abroad by an overseas depository bank against the underlying shares of an Indian company held by a domestic custodian. GDRs are listed and traded on stock exchanges outside India and are usually denominated in US dollars.
Indian GDRs have mainly been listed on the London Stock Exchange and the Luxembourg Stock Exchange, which are the traditional homes of GDR listings. Several issues have also been listed on the Singapore Exchange, and the Hong Kong Exchange is another venue used for GDR listings.
The New York Stock Exchange lists American Depository Receipts (ADRs), which are issued for US investors under SEC rules; a receipt listed there is an ADR rather than a GDR.
The Bombay Stock Exchange is a domestic exchange where the underlying shares trade in rupees; GDRs, being offshore instruments, are not listed there. So London, Luxembourg, Singapore and Hong Kong form the correct combination.
Hence, (i), (iii), (v) and (vi).
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