Security Market Operations

Difference Between ADR and GDR

Difference Between ADR and GDR

Basis of DifferenceAmerican Depository ReceiptGlobal Depository Receipt
Stock ExchangeADRs are listed in American Stock Exchanges such as New York Stock Exchange , NASDAQ etc.GDRs are listed in the European market . Maximum trading of GDRs takes place in London Stock Exchange or Luxembourg Stock Exchange.
CategorisationADRs are categorized into three parts on the basis of disclosure requirements wherein Level I and Il cannot be used by issuers for fund raising.There is no such categorization in case of GDRs.
MarketADRs are issued in America.GDRs are issued in European Capital Market.
Types of InvestorsADRs are sold to Retail Investors.GDRs are sold to Qualified Institutional Buyers.
Financial StatementCompanies issuing ADRs have to prepare their financial statement in accordance to the principles of GAAP ( Generally Accepted Accounting Principles ).Companies issuing GDRs need to submit a “ statement of difference ” in their financial position that occurs due to the adoption of Indian accounting standards or UK accounting standards.

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