A
global depository receipt (
GDR), also known as
international depository receipt (
IDR), is a certificate issued by a
depository bank, which purchases
shares of foreign companies and deposits it on the
account. They are the global equivalent of the original
American depository receipts (ADR) on which they are based. GDRs represent ownership of an underlying number of
shares of a foreign company and are commonly used to invest in companies from developing or
emerging markets by investors in developed markets.