Presentation on theme: "PRESENTED BY : VISHAL SOIN GDR & EURO BONDS. DEPOSITORY RECEIPTS Depository receipts are instruments issued by international depositories (ODB), and they."— Presentation transcript:
PRESENTED BY : VISHAL SOIN GDR & EURO BONDS
DEPOSITORY RECEIPTS Depository receipts are instruments issued by international depositories (ODB), and they represent an interest in the underlying shares held by them in the issuer company (Indian Company). The shares are usually held by a domestic custodian on behalf of the depositories in turn issue the depository receipts, which entitle the holder of the receipts to get the underlying shares on demand.
GLOBAL DEPOSITORY RECEIPTS 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 financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros. The voting rights of the shares are exercised by the Depository as per the understanding between the issuing company and the GDR holders.
INTERNATIONAL CAPITAL MARKET INTERNATIONAL EQUITY MARKET INTERNATIONAL BOND MARKET EURO BOND FOREIGN BOND ADRGDR
PARTIES INVOLVED IN GDR Lead manager Co-manager Overseas Depository Banks Domestic Custodian Bank Listing agent Legal advisors Printers Auditors Underwriters
FUNCTIONS Issuing Company Possession of shares with the Custodian Bank Depository Bank Issues Depository Receipts to investors
PROCESS Co/- deposits large no of shares located in country where it wants to list. The bank then issues receipts underlying the shares (2-4) Behaves exactly like regular stocks- price fluctuation according to demand & supply Is receipts are sold to people of that country This receipt is then listed on local stock exchanges.
GDR MARKET London Stock Exchange Luxembourg Stock Exchange Dubai International Financial Exchange (DIFX) Singapore Stock Exchange Hong Kong Stock Exchange
EUROBONDS Def: A bond denominated in a currency other than that of the country in which it is issued. These are traded worldwide, not just in Europe Categorized according to the currency in which they are denominated Example: Euroyen bond = a Eurobond denominated in Yen but issued in the U.S.
EURODOLLAR BOND A dollar-denominated bond sold to investors outside the United States. These securities allow buyers to benefit, or lose, from variations in currency exchange rates. A Eurodollar bond is also an example of a Eurobond. Eurodollar bonds are one of the more common eurocurrency bonds because of the international importance of the dollar
CONTI.. EuroDollar Bonds is a type of Eurobond that pays both interest and principal in euros. They are not regulated by the Securities and Exchange Commission.