Question

“ADR & GDR serves the same purpose whenever shares are issued abroad by Indian companies”. Then why can’t we call them by the same name?

Answer 1

The important differences between ADR and GDR are:

ADR	GDR
They are issued and traded in USA	They are issued and traded in European capital market
Both individual and institutional investors can make investment	Only institutional investors can invest
It can be converted into shares and shares into ADR	Once converted into shares, it cannot be converted back.
Legal and accounting costs are high	Legal and accounting costs are comparatively less