ADVANTAGES OF THE IDR :

Benefits to the Issuing Company

• It provides access to a large pool of capital to the issuing company.

• It gives brand recognition in India to the issuing company.

• It facilitates acquisitions in India.

• Provides an exit route for existing shareholders.
Benefits to Investors

• It provides portfolio diversification to the investor.

• It gives the facility of ease of investment.

• There is no need to know your customer norms.

• No resident Indian individual can hold more than $200,000 worth of foreign securities purchased per year as per Indian foreign exchange regulations. However, this will not be applicable for IDRs which gives Indian residents the chance to invest in an Indian listed foreign entity.