Explain briefly the following: Indian depository receipts

According to Section 2(48) of the Companies Act, 2013 "Indian Depository Receipt" means any instruction in the form of a depository receipt created by a domestic depository in India and authorised by a company incorporated outside India making an issue of such depository receipts. In other words, An IDR is an instrument- denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository (custodian of securities registered with SEBI) against the underlying equity of issuing foreign company. Section 390 of the Companies Act, 2013 and Rule 13 of Companies (Registration of Foreign Companies) Rules, 2014 lays down the procedure for issue of IDRs. Apart from this, a company has to comply with Chapter X and XA of SEBI (ICDR) Regulations, 2009 to issue IDRs or a rights issue of IDRs.