Write short notes on the following: Global depository receipts

Clause (44) of Section 2 of the Companies Act, 2013 define Global Depository Receipts (GDR) as under: Global Depository Receipt means any instrument in the form of a depository receipt, by whatever name called, created by a foreign depository outside India and authorised by a company making an issue of such depository receipts. Benefits to Investors by Investing in GDRs: Convenience of holding foreign securities in domestic market. Diversification in portfolio. No restrictions in trading as Depository Receipts are treated as domestic securities. Avoid currency risk. An effective source of finance. Global reputation Extension of shareholder base beyond territory