Question

What is the purpose of the Depository Receipt mechanism?

a.

To regulate the domestic stock exchanges

b.

To facilitate the trading of commodities

c.

To provide a way for Indian companies to raise equity capital in the international market

d.

To manage foreign currency exchange rates

Answer: (c).To provide a way for Indian companies to raise equity capital in the international market Explanation:The Depository Receipt mechanism provides a way for Indian companies to raise equity capital in the international market.

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Q. What is the purpose of the Depository Receipt mechanism?

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