(i) First of all, a company hands over the shares to a Domestic Custodian Bank (DCB).
(ii) Then DCB requests the American Depository Bank (ADB) to issue the shares in the form of ADRs.

(i) Exploiting Natural Resources
(ii) Heavy outflow of Capital
(iii) Not transferring Technology
(iv) Exploiting cheap labour
(v) Creating Monopolistic Environment

Foreign direct investment (FDI)is an investment made by a company or an individual in one country with business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

International finance is a branch of financial economics that deals with the monetary interactions that occur between two or more countries.

Modem organisations including multinational companies depend upon sizeable borrowings in rupees as well as in foreign currencies. Prominent financial instruments used for this purpose are Depository Receipts.

Most of the commercial banks extend foreign currency loans for promoting business opportunities. The loans and services of various types, provided by banks differ from country to country.

i. GDR: Global Depositary Receipt
ii. ODB: Overseas Depository Bank
iii. DCB: Domestic Custodian Bank
iv. ECB: External Commercial Borrowing

Foreign direct investment (FDI) is an investment made by a company or an individual in one country with business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

American Depositary Receipt (ADR):
ADR (American Depository Receipts) is a dollar denominated negotiable certificate representing a non-US company in US Market which allows the US citizens to invest in overseas securities.

Foreign direct investment (FDI) is an investment made by a company or an individual in one country with business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.