Global Depository Receipt (GDR) is a sort of bank certificate that is issued in more than one country for shares in foreign companies. It can be circulated worldwide in the capital markets. GDR's are issued by banks. Th bank purchases shares of foreign companies and deposit it on the accounts. Thus facilitation of the trade of share is the main objective of GDR, especially those from emerging markets. The values of the related share and the prices of GDR's are often close.

Indian companies can raise equity capital in the international market by issuing the Global Depository Receipt (GDRs). GDRs are designated in dollars and there are no ceilings on investment. The requirement for issuing of GDR is that the company applying should have consistent track record for good performance (financial or otherwise) for a minimum period of 3 years. For infrastructure projects such as power generation, telecommunication, petroleum exploration and refining, ports, airports and roads this condition would be however relaxed.
Use of GDRsGDR has many advantages. The government may use the proceed of the GDR to finance capital goods imports, capital expenditure including domestic purchase/installation of plant, equipment and building and investment in software development, prepayment or scheduled repayment of earlier external borrowings, and equity investment in JV/WOSs in India.

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