ADR/GDR can be issued

A. only by listed companies

B. by listed or unlisted companies

C. only by companies listed on BSE

D. none of the above

Answer: Option A

Solution(By Examveda Team)

ADR/GDR can be issued only by listed companies. With the help of ADR, foreign companies can trade in US stock market, through various bank branches. On the other hand, GDR helps foreign companies to trade in any country's stock market other than the US stock market, through ODB's branches. ADR is issued in America while GDR is issued in Europe.