Q. Consider the following statements: An Indian Depository Receipt (IDR) declares ownership of shares of a Foreign Company An Indian Depository Receipt is essentially traded in Indian Rupees. An IDR can be converted into Underlying shares with approval of RBI Which among the above statements is / are correct?
Answer: All 1, 2 & 3
Notes:

1. True - An Indian Depository Receipt (IDR) does declare ownership of shares of a foreign company. IDRs allow foreign companies to list their shares on Indian stock exchanges.
2. True - IDRs are traded in Indian rupees on Indian stock exchanges. This makes it easier for Indian investors to invest in foreign companies without having to deal with foreign currencies.
3. True - IDRs can be converted into the underlying shares of the foreign company, but only with the approval of the Reserve Bank of India (RBI). The RBI ensures proper procedures are followed during the conversion process.

15

Above question is part of 10000+ MCQs for UPSC (Prelims) Paper-1 course in GKToday Android app.