Corporate India is actively tapping the global equity markets while accounting for a majority of the listings abroad.

Depository Receipts (DR) have emerged as a favorite avenue to tap international capital markets for many companies in emerging markets and corporate India has been no exception. In 2006, India Inc. witnessed a substantial interest in DR markets, following the global trend.

According to the Bank of New York's year-end report, the overall activity of American and Global Depository Receipt (GDR) markets has increased substantially with the unprecedented levels of trading and capital rising up reflecting consistently strong investment performance globally. India Inc. has contributed significantly to this sharp upsurge in activity as it accounted for a majority of new DR listings in the year 2006. JP Morgan anticipates the sustained as well as accelerated growth momentum in the year 2007, especially in BRIC countries.

Though the origin of the DR program dates back to 1927 when it was first conceptualized by JP Morgan, it has gained widespread popularity only in the past two decades with the integration of global capital markets. DRs are the investment tools which facilitate global exposure by way of accessing cross-border capital. They offer a well-established route for companies to access foreign capital markets. They allow investors to purchase and trade in foreign securities and also offer an opportunity to the issuing company to tap major international markets.

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