n NISM Certifications
XV NISM Series XV
Medium

What is the depository receipt called that is issued in India and listed on an Indian stock exchange against foreign shares?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Indian Depository Receipts (IDR)

    Correct answer

  2. B

    Global Depository Receipts (GDR)

  3. C

    Hybrid Depository Receipts (HDR)

  4. D

    American Depository Receipts (ADR)

Why this is the answer

IDRs are domestic instruments representing shares of foreign companies. They allow Indian investors to invest in foreign stocks without the foreign company listing directly on Indian exchanges.

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