Which one of the following statements is false?

Correct option is B

GDR (Global Depository Receipt) is not specifically issued by a US bank. Instead, GDRs are negotiable financial instruments issued by international depository banks that allow investors to hold shares in foreign companies. GDRs are usually issued in European and international markets, and they represent shares in a company but are not confined to issuance by US banks.

The remaining statements are true:

• The capital market deals with long-term funds.
• Shares of publicly listed companies are traded on stock exchanges like BSE and NSE.
• Securities listed on stock exchanges are eligible for trading and are called listed securities.

Information Booster:

GDR (Global Depository Receipt):
A GDR is a financial instrument that represents shares of a foreign company and is traded in multiple international markets other than its home country. GDRs make it easier for companies to raise capital outside their domestic markets and for international investors to invest in foreign companies. They are commonly listed on stock exchanges in Europe, such as the Luxembourg Stock Exchange or the London Stock Exchange. This is a tool for globalizing investment opportunities.

Additional Knowledge:

1. (a) Capital Market:
   The capital market provides a platform for raising medium- and long-term funds through instruments like shares, debentures, and bonds. It is divided into the primary market (for new issues) and the secondary market (for trading existing securities).

2. (c) Bombay Stock Exchange and National Stock Exchange:
   The BSE and NSE are the primary stock exchanges in India. Companies listed on these exchanges comply with stringent regulations, providing a transparent trading platform for investors.

3. (d) Listed Securities:
   Listed securities are those officially approved for trading on a stock exchange. The listing ensures adherence to regulatory requirements, transparency, and investor protection.

Each of these statements aligns with fundamental market principles, unlike GDRs being exclusively issued by US banks.