|Basis of Difference
|American Depository Receipt
|Global Depository Receipt
|ADRs 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.
|ADRs 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.
|ADRs are issued in America.
|GDRs are issued in European Capital Market.
|Types of Investors
|ADRs are sold to Retail Investors.
|GDRs are sold to Qualified Institutional Buyers.
|Companies 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.