Consider the following statements about Indian Depository Receipts IDR and mark the correct one It i...........

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Consider the following statements about Indian Depository Receipts (IDR) and mark the correct one?

It is denominated in Indian rupees.
IDRs can be purchased by any person who is resident in India
These are listed on Indian stock exchange.

Code

1 and 2

2 and 3

1 and 3

All of the above

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Explanation:

An IDR is an instrument denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India (SEBI)) against the underlying equity shares of issuing company to enable foreign companies to raise funds from the Indian securities Markets. The size of an IDR issue shall not be less than Rs. 50 crores

Following are some of the requirements for investing in IDRs:

IDRs can be purchased by any person who is resident in India as defined under FEMA
Minimum application amount in an IDR issue shall be Rs. 20,000.
Investments by Indian companies in IDRs shall not exceed the investment limits, if any, prescribed for them under applicable laws

The IDRs are required to be listed in atleast one stock exchange in India having nationwide terminals.