Page 177 - Corporate Finance PDF Final new link

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BRILLIANT’S Long Term Financing and Valuation of Goodwill & Shares 177

3. Relative Rates of Inflation 3. B§âcoeZ Ho$ [aco{Q>d aoQ²>g
4. Terms of Trade 4. Q´>oS> Ho$ Q>åg©
5. Government Policies 5. JdZ©_|Q> nm°{cgrO
6. Country Rating, etc. 6. H§$Q´>r aoqQ>½g, Am{X&
There are different instruments through Eogo H$B© gmao BÝñQ¯>_|Q²>g h¢ {OZH$m Cn`moJ H$aHo$
which the companies can raise funds from H§$nZr B§Q>aZoeZc _mH©o$Q²>g go \§$S²>g àmá H$a gH$Vr h¡Ÿ&
international markets. They are: do h¢:

1. Depository Receipts 1. {S>nm°{OQ>ar [a{gQ²>g
2. American Depository Receipts 2. A_o[aH$Z [S>nm°{OQ>ar [a{gQ²>g
3. Global Depository Receipts 3. ½cmo~c {S>nm°{OQ>ar [a{gQ²>g
4. Foreign currency options 4. \$m°aoZ H$a§gr Am°ßeÝg
5. Foreign currency convertible bonds 5. \$m°aoZ H$aÝgr H$Ýd{Q>©~c ~m°ÝS²>g
6. Other international instruments. 6. AÝ` B§Q>aZoeZc BÝñQ¯>_oÝQ²>g

1. Depository Receipts (DR) 1. {S>nm°{OQ>ar {a{gQ>²g (DR)
A Depository Receipt means any instru- H$moB© ^r BÝñQ¯>_|Q> Omo B§{S>`m Ho$ ~mha AmodagrO
ment in the form of a depository receipt or cer- {S>nm°[OQ>ar ~¢H$ Ûmam EH$ {S>nm°{OQ>ar [a{gQ> `m g{Q>©{\$Ho$Q>
tificate created by the Overseas Depository Ho$ ê$n _| CËnÞ hmoVm h¡ VWm gmYmaU eo`a Ho$ Bí`y Ho$ {déÕ
Bank outside India and issued to the non-resi- Zm°Z ao{gS>|Q> BÝdoñQ>g© H$mo Bí`y {H$`m OmVm h¡ Cgo {S>nm°{OQ>ar
dent investors against the issue of ordinary
shares. A Depository Receipt is a negotiable [a{gQ> H$hVo h¡Ÿ& {S>nm°{OQ>ar [a{gßQ> EH$ {ZJmo{eE~c BÝñQ¯>_|Q>
instrument evidencing a fixed number of eq- h¡, Omo Bí`y H$aZo dmcr H$ånZr Ho$ EH$ {\$ŠñS> Z§~a Ho$ BpŠdQ>r
uity shares of the issuing company generally eo`a H$mo à_m{UV H$aVr h¡ Omo gm_mÝ`V: US S>m°ca _|
denominated in US dollars. Depository Receipts {S>Zm°{_ZoQ>oS> H$aVo h¢Ÿ& {S>nm°{OQ>ar [a{gQ> gm_mÝ`V: CZ
are generally used by those companies which H$ånZrO Ûmam à`moJ _| cm`m OmVm h¡ Omo AnZr {gŠ`y[aQ>rO
sell their securities in international market and H$mo B§Q>aZoeZc _mH}$Q> _| ~oMVo h¢ VWm AnZr eo`a hmo{ëS>§J
want to expand their shareholding abroad. H$mo {dXoe _| ~‹T>mZm MmhVo h¢Ÿ& `o {gŠ`y[aQ>rO B§Q>aZoeZc ñQ>m°H$
These securities are listed and traded in inter- EŠgM|O _| {bñQ>oS> VWm Q´>oS> h¢Ÿ& {gŠ`y[aQ>r H$m Bí`y EH$
national stock exchanges. The security is issued
through the help of a depository bank, which {S>nm°{OQ>ar ~¢H$ Ho$ VËdmdYmZ _| Bí`y hmoVr h¡, Omo ~Xco _|
in turn purchases shares of international com- B§Q>aZoeZc H$ånZrO Ho$ eo`a H$mo AH$mCÝQ> Ho$ ñdm_r H$s Amoa
panies on behalf of the account owner. There go IarXVm h¡Ÿ& {S>nm°{OQ>ar [a{gQ>> _w»`V: Xmo àH$ma H$s
are mainly two forms of depository receipts: hmoVr h¡:
1. The American Depository Receipts 1. A_o[aH$Z {S>nm°{OQ>ar [a{gQ>²g> (ADRs)
(ADRs).
2. The Global Depository Receipts (GDRs). 2. ½cmo~c {S>nm°{OQ>ar [a{gQ>²g (GDRs)
2. American Depository Receipts 2. A_o[aH$Z {S>nm°{OQ>ar [a[gQ> (ADRs)
(ADRs)
The ADR is a depository receipt listed and ADR EH$ {S>nm°{OQ>ar [a{gQ> h¡ Omo USA Ho$ EŠgM|O
traded on exchanges in the USA. The ADR was _| {cñQ>oS> VWm Q´>oS> H$s OmVr h¡Ÿ& ADR g~go nhco 1927