Global Depository Receipts (GDRs)

Global Depository Receipts (GDRs) are financial instruments that allow investors outside a company’s home country to invest in that company’s shares. Essentially, a bank in one country buys shares from the company and issues receipts to investors elsewhere, representing ownership. These receipts are traded on international stock exchanges, providing companies access to global capital without direct listings. GDRs facilitate cross-border investment, diversify investor bases, and provide companies with overseas funding, all while offering investors a convenient way to invest in foreign companies without dealing with different stock markets or currencies.