UPSC General Studies Sample Paper General Studies Sample Paper-2

  • question_answer
    Which one of the following statements is not correct about Indian Depository Receipts (IDRs)?

    A)  An IDRs is a depository receipt denominated in Indian rupees issued by a domestic depository in India

    B)  IDRs are similar to equity shares. IDRs holders have the same rights as shareholders

    C)  Both 'a' and 'b'

    D)  None of the above

    Correct Answer: C

    Solution :

    [d] Indian Depository Receipts are issued by dome depository. Much like an equity share, it is an ownership company. Since, foreign companies are not allowed to list Indian equity markets, IDR is a way to own shares of the companies. IDRs are listed on Indian Stock Exchanges. holders are eligible to vote on decisions of the comp similar to equity shareholders.

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