n NISM Certifications
VII NISM Series VII
Medium

_____ are equity instruments issued abroad by authorized overseas corporate bodies against shares of Indian companies held with domestic custodian banks.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    American Depository Receipts (ADRs)

  2. B

    Foreign Currency Convertible Bonds (FCCBs)

  3. C

    External Commercial Borrowings (ECBs)

  4. Global Depository Receipts (GDRs)

    Correct answer

Why this is the answer

Global Depository Receipts (GDRs) allow Indian companies to raise capital abroad. These are issued by overseas entities against shares held with domestic custodian banks.

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NISM Series VII Mock Test 3