What Are Global Depository Receipts? How Are They Manipulated?

Category: Other

Show me your receipts! How do people invest in companies based in foreign countries? One way is through GDRs or Global Depository Receipts. It is an easy way for a company to raise capital from offshore markets. However, due to comparatively lax regulations and a few investment loopholes, they have become more vulnerable to manipulation recently. Recent reports have shown the debt-ridden Sujana Group to be one such manipulator.