Full formBanking & Finance
IDRstands forIndian Depository Receipt
Full Form of IDR
What is IDR?
An Indian Depository Receipt (IDR) is a financial instrument denominated in Indian Rupees that allows foreign companies to raise capital from the Indian securities market without listing their shares directly on Indian stock exchanges. It is issued by a domestic depository, such as NSDL or CDSL, against the underlying equity shares of the foreign issuer held with a custodian abroad. IDRs were introduced in India under the Companies Act, 1956 (and later under the 2013 Act) and are regulated by the Securities and Exchange Board of India (SEBI). They enable Indian investors to invest in global firms like Standard Chartered Bank, which was the first company to issue IDRs in 2010. IDRs are traded on exchanges like BSE and NSE and carry voting rights, dividends, and other benefits linked to the underlying shares. They serve as a bridge for international companies to tap India’s growing investor base without full cross-listing. In competitive exams such as SEBI Grade A, RBI Grade B, and banking exams, IDRs are frequently asked in the capital markets section. Understanding IDRs helps clarify India’s integration into global finance and the mechanisms of foreign portfolio investment within regulatory frameworks.
IDR का फुल फॉर्म
भारतीय डिपॉजिटरी रसीद
Example
Standard Chartered became the first foreign company to list Indian Depository Receipts (IDRs) on both BSE and NSE in June 2010, raising over ₹2,400 crore.
IDR — frequently asked questions
What is the full form of IDR?
The full form of IDR is Indian Depository Receipt. It is a financial instrument that allows foreign companies to raise capital from Indian investors by issuing receipts backed by their underlying shares.
What is the difference between IDR and ADR?
IDR (Indian Depository Receipt) is issued in India and denominated in Indian Rupees for foreign companies raising funds from Indian investors, while ADR (American Depository Receipt) is issued in the US and denominated in US Dollars for foreign companies raising funds from American investors.
How does an IDR work in India?
A foreign company deposits its shares with an overseas custodian. The custodian then instructs a domestic depository in India (like NSDL or CDSL) to issue IDRs against those shares. These IDRs can be bought and sold on Indian stock exchanges, and holders get proportional rights and returns.