Indian Depository Receipts (lDRs):
1. allows investors abroad in Indian Companies
2. are denominated in Indian Rupees
3. are issued by a domestic depository in India
4. can not be listed in stock exchanges
Choose the correct statements from the codes given below:

Answer: [B] 2 & 3

An IDR is a mechanism that allows investors in India to invest in listed foreign companies, including multinational companies, in Indian rupees. IDRs give the holder the opportunity to hold an interest in equity shares in an overseas company. IDRs are denominated in Indian Rupees and issued by a Domestic Depository in India. They can be listed on any Indian stock exchange. Anybody who can invest in an IPO (Initial Public Offer) is/are eligible to invest in IDRs. In other words, what ADRs/GDRs are for investors abroad with respect to Indian companies, IDRs are for Indian investors with respect to foreign companies.

This question is a part of GKToday's Integrated IAS General Studies Module