Question

What is the basis for determining the ratio for issuing ADRs/GDRs by an Indian company?

a.

Ratio set by the Ministry of Finance

b.

Ratio set by the Securities and Exchange Board of India (SEBI)

c.

Ratio worked out by the Indian company in consultation with the Lead Manager to the issue

d.

Ratio set by the Reserve Bank of India (RBI)

Answer: (c).Ratio worked out by the Indian company in consultation with the Lead Manager to the issue Explanation:The ratio for issuing ADRs/GDRs is worked out by the Indian company in consultation with the Lead Manager to the issue.

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Q. What is the basis for determining the ratio for issuing ADRs/GDRs by an Indian company?

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