n NISM Certifications
VII NISM Series VII
Medium

Equity instruments issued abroad by authorized overseas bodies against shares of Indian companies held with domestic custodian banks are known as ______.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    External Commercial Borrowings

  2. Global Depository Receipts

    Correct answer

  3. C

    Foreign Currency Convertible Bonds

  4. D

    American Depository Receipts

Why this is the answer

GDRs are negotiable instruments issued by foreign depository banks representing shares of Indian companies, typically traded on European exchanges.

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NISM Series VII Mock Test 6