Question
____________ is a type of Depository Receipt (DR) issued
by a depositary bank without the explicit involvement or consent of the foreign company whose shares are represented by the DR .Solution
Unsponsored Depository Receipts (UDRs) are a type of Depository Receipt (DR) issued by a depositary bank without the explicit involvement or consent of the foreign company whose shares are represented by the DRs. As such, UDRs are floated without the participation of the issuer company . In India, NSE IFSC (National Stock Exchange's International Financial Services Centre) in GIFT City provides trading in US stocks in the form of unsponsored depositary receipts without the direct involvement or sponsorship of the underlying foreign company.
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