BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A deposit account with a public Sector Bank
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A depository account with any of the Depositories India
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An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company
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An instrument in the form of deposit receipt issued by Indian depositories
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Detailed explanation-1: -Indian Depository Receipt (IDR) is a financial instrument denominated in Indian Rupees in the form of a depository receipt. The IDR is a specific Indian version of the similar global depository receipts.
Detailed explanation-2: -Indian Depository Receipt is an instrument denominated in Indian rupees in the form of a depository receipt created by the custodian of securities registered with the Securities and Exchange Board of India against the underlying equity of issuing company.
Detailed explanation-3: -Solution(By Examveda Team) A depository receipt represents shares issued in local currency. A depositary receipt (DR) is a negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities.
Detailed explanation-4: -The features of IDR or Indian depository receipts are as follows: It is an instrument for foreign companies to raise capital from Indian markets. It is denominated in Indian rupees.