# Offer of Indian Depository Receipts (IDR) [Section 390]
## Meaning of IDR
An Indian Depository Receipt (IDR) is an instrument:
- Created by a Domestic Depository in India, and
- Authorised by a company incorporated outside India which is making the issue of such depository receipts.
## Conceptual Understanding
- IDRs allow Indian investors to invest in foreign companies via the Indian capital markets without going abroad.
- The foreign company deposits its shares with an overseas custodian; an Indian domestic depository then issues IDRs against those shares to Indian investors.
## Compliance Requirements
A company incorporated outside India issuing IDRs shall comply with:
1. Rule 13 of Companies (Registration of Foreign Companies) Rules, 2014
2. SEBI (ICDR) Regulations, 2009
3. RBI Directions
## Significance
IDR provisions facilitate cross-border capital mobility, enabling Indian retail investors to hold equity-like instruments in global companies via a domestic, rupee-denominated security.