Which one of the following is a mean to sell and buy shares of a foreign company without opening a brokerage (demat) account?

Question

Question

This question was previously asked in

UP Police SI (दरोगा) Previous Paper 2 (Held On: 13 Dec 2017 Shift 3)

Answer 1

The correct answer is Global Depository Receipt(GDR).

GDRs are equity instruments issued abroad by authorized overseas corporate bodies against the share/bonds of Indian companies held with nominated domestic custodian banks.
- A GDR may represent one or more shares of the issuing companies.
- A holder of a GDR can, at any time convert it into the number of shares that it represents.
- GDRs can be denominated either in dollars or Euros and are commonly listed on European Stock Exchanges.
- GDRs are for foreign companies who want to invest in Indian Companies.

Additional Information

Special Drawing Rights:
- SDRs are the instrument of the International Monetary Fund which helps the member country in the time of economic crisis.
Indian Depository Receipts:
- Indian Depository Receipts are issued to Indian Investors who want to invest in foreign companies without registering themselves in the foreign stock exchanges.