An IDR, or Indian Depository Receipt, is a financial instrument used by foreign companies to raise capital in the Indian securities markets. It represents ownership of the underlying equity of the company and is issued by a domestic depository registered with SEBI, the Securities and Exchange Board of India. Unlike traditional stocks, an IDR is denominated in Indian rupees, making it accessible to investors in the local currency. This allows overseas businesses to tap into the vast potential of Indian markets and diversify their sources of funding.