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 depositories
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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: -An IDR is in Indian rupees and is created by a domestic depository (custodian of securities registered with SEBI (Securities and Exchange Board of India). It is issued against the underlying equity of the company to enable foreign companies to raise funds from the Indian securities Markets.
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: -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.
Detailed explanation-4: -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.