* A Depository Receipt is a negotiable financial instrument issued by a company in a foreign jurisdiction.
* They represent certain securities like bonds, shares etc.
* DRs is an important mechanism for raising funds by tapping foreign investors who otherwise may not be able to participate in the domestic market.
* In India, any company, whether private limited or public limited or listed or unlisted are capable of issuing DRs.
* The issue of DRs is regulated by Ministry of Finance’s “The Depository Receipts Scheme, 2014″.
* Depending upon the location in which DRs are issued, they are called as ADRs (American Depository Receipts), IDR (Indian Depository Receipts) or in general as GDR (Global Depository Receipt).