Comment on the following and support your answer with necessary reasons: Investment in Indian depository receipts (IDRs) is an opportunity for the Indian investors to invest funds in foreign equity.

Investment in Indian Depository Receipts (IDRs) is an interesting opportunity for the Indian Investors who are looking for investing their funds in foreign equity. Just like American Depository Receipts or Global Depository Receipts, which are instruments used by Indian Companies to raise money abroad, IDRs are meant for foreign companies looking to raise capital in India. IDR is basically any instrument in the form of a depositary receipts created by Domestic depositories in India against the underlying equity shares of issuing company which is located outside India. The Indian IDR holder would thus indirectly own the equity shares of overseas issuer company.