Global Depository Receipts (GDRs)

A Global Depository Receipt (GDR) is a negotiable instrument issued by a depository bank in international markets - typically in Europe and generally made available to institutional investors. It evidences ownership of shares in a foreign company. GDRs are like ADRs, except that while an ADR is issued in U.S. market, the GDR is issued in any market outside the home country of the issuer.

Each GDR represents a specific number of underlying ordinary shares in the international company, on deposit with a custodian in the applicable home market. GDRs are quoted in the currency of the market in which it is issued. For example, if an Indian company issues GDRs in both UK and Japan and the UK GDRs will be quoted in GBP and the Japanese GDRs will be quoted in JPY. Generally, the GDRs are listed in markets of London, Luxembourg, Singapore, Frankfurt and Dubai.

Issue of GDRs require the support of a lot of finance professionals such as investment banks, lawyers and accountants, and most importantly depository or depository bank. The depository bank is the central pillar of a GDR issue. While the services of investment banks, lawyers and accountants are either one-time or periodic in nature, the services of the depository is continous in nature for the entier lifetime of the GDR issue. The depository bank is the only party to GDR transactions that is engaged on an end-to-end basis.

Role of various financial services providers in an GDR issue

They make GDRs available to qualifying investors. Basically, they act as the sales agents.

They provide the following fuctions.


Investment Bankers




Updation History
First updated on 19th August 2020.