ABSTRACT
For instance, investors who hold American Depositary Receipts of Dr. Reddy’s Laboratories Ltd. (DRL) and investors who have exposure to domestic shares of DRL possess similar claims to the free cash flows of the DRL. This chapter is devoted towards examining the relationship between the prices of Depositary Receipts issued by Indian firms that trade in foreign jurisdictions such as Luxembourg, London and USA and the underlying domestic shares that trade in India. Ambuja Cements is a leading cement manufacturing company that ranks fourth in the Cement Industry. Indiabulls Housing Finance Ltd. is in the business of providing housing financial services and ranks third in the housing financial services industry. IndusInd Bank had come out with a global offering of 29.49 million Global Depositary Receipts (GDRs) with each GDR representing one domestic share in March 2007. Despite the claim that the world is flat, political boundaries exist – so do differences in regulation across countries.
