GLOBAL DEPOSITORY RECEIPT

MEANING:

·         It is in the form of depository receipt.

·         It is created by overseas depository bank.

·         It is denominated in dollar.

·         It is issued to non-resident person.

·         It represents two or more ordinary share of a Indian company.

·         It does not carry any voting right.

PROCEDURE FOR ISSUANCE OF GDR:

1.       Following approvals are required

                                                                           

·   Board of directors.

·   Approval of shareholder.

·   Ministry of finance.

·   Reserve bank of India

·   Stock exchange for listing of underlying share.

2.       Appointment of intermediaries:

·         Lead manager.

·         Co-lead/co-manager.

·         Overseas depository bank.

·         Domestic custodian bank.

·         Listing agent.

·         Legal advisors.

·         Printers.

·         Auditors.

·         Underwriter.

3.     Principal documention:

·         Subscription agreement.

·         Depository agreement.

·         Custodian agreement.

·         Agency agreement.

·         Trust deed.