Briefly explain the following in relation to the issue of ADR (American Depository Receipts) & GDR (Global Depository Receipts) as per provision under companies (Issue of Global Depository Receipts) Rules, 2014: Spon

(ii) Sponsored ADR/GDR Issue An Indian company can also sponsor an issue of ADR / GDR. Under this mechanism, the company offers its resident shareholders a choice to tender their shares back to the company so that on the basis of such shares, ADRs/GDRs can be issued abroad. The proceeds of the ADR / GDR issue are remitted back to India and distributed among the resident investors who had offered their Rupee denominated shares for conversion. These proceeds can be kept in Resident Foreign Currency (Domestic) accounts in India by the resident shareholders who have tendered such shares for the purpose of the issue of ADRs / GDRs.