Consider the following statements regarding Global Depositary Receipt GDR 1 GDR can be listed and tr...........

Economic Affairs Balance of Payments

Consider the following statements regarding Global Depositary Receipt (GDR).

1. GDR can be listed and traded on stock exchange.

2. It is a financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.

3. Regulatory and other agencies suspect that GDR route is being used for bringing back suspected illicit funds slashed abroad.

Which of the above statements are correct?

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

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Explanation:

A global depositary receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
The shares are held by a foreign branch of an international bank.
The shares trade as domestic shares but are offered for sale globally through the various bank branches.
A GDR is a financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.
A GDR is very similar to an American depositary receipt (ADR). GDRs are called EDRs when private markets are attempting to obtain Euros.
GDRs may be traded in multiple markets, generally referred to as capital markets, as they are considered to be negotiable certificates.