Are GDRs(Global Depository Receipts) the way does FIIs invest in indian companies?
Depository Receipts are financial instruments which represents shares/ownership in a foreign company. The actual shares are owned by a bank. The bank then divides these shares into Depository Receipts which can traded on stock exchange and work exactly like an equity share.
In GDRs investors of more than one country can invest as these can be in multiple currencies.
But in ADRs, American investors can invest as these are in dollars.
And in IDRs for example Standard Chartered PLC(issued against shares of Standard Chartered PLC a foreign company), Indian investor can invest as these are in rupee.
FIIs can invest in India by many ways, it can be through Portfolio Investment Scheme, GDRs, ADRs etc. But it is not fixed, FIIs can invest in INDIA in the way he finds suitable.
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