Global Depositary Receipts (2)
June 30th, 2008 Ugonna Maduagufor || ugonna@stockmarketnigeria.com
Players in a GDR programme.
(1) Issuing Company: The company raising equity capital through the Global Depositary Receipt.
(2) Depositary bank: a depositary bank acts as an issuing company for the GDR’s which actually represents the underlying shares of a company wishing to raise capital by way of GDR, in a foreign company.
(3) GDR investors: includes any investor in GDR’s, wishing to pertake in the ownership of a desired foreign lised company or any local investor pertaking in the pocession of a domestic tranche of the issued GDR (special case as in Nigeria)
(4) Clearing company: Any organisation (company) providing normally an electronic book keeping system and platform for clearing and settlement services for transacted securities rather than transfer of certificates.
(5) Secondary Market/Security Exchange Market: Any security exchange market on which company’s Global Depositary Receipt (GDR) is listed.
Additional Players due to a domestic tranche provision for a GDR programme.
(6) Local Custodian: This is a local representative of the Depositary Bank, with the responsibility of holding the underlying shares deposited for the issued GDR’s. It also has the role of releasing the underlying shares to the investors on conversion of such GDR’s on the instruction of the Depositary Bank.
(7) Domestic brokers: Any dealing member of the local Exchange house, registered with the appropriate regulatory bodies (SEC) participating as a broker in a GDR transaction, normaly involves having an account with a foreign dealing broker of the security exchange market listing such a GDR.
(8) Administrative Agent: This is a company that acts as a registrar for the GDR programme, keeps book of holders also administering and handling such issues as payment of dividends to the domestic local tranche GDR holders.
(No Ratings Yet)
Loading ...