Examining Global Resource Mobilization: Strategies and Hurdles in Accessing the International Capital Market
Subhajit Chakraborty1, Susmita Biswas2
1Dr. Subhajit Chakraborty, Department of Law, St. Xavier’s University, Xavier Law School, West Bengal (Kolkata), India.
2Susmita Biswas, Research Scholar, Department of Law, Seacom Skills University, West Bengal (Kolkata), India.
Manuscript received on 05 April 2024 | Revised Manuscript received on 18 April 2024 | Manuscript Accepted on 15 May 2024 | Manuscript published on 30 May 2024 | PP: 32-38 | Volume-4 Issue-1, May 2024 | Retrieval Number: 100.1/ijef.A257104010524 | DOI: 10.54105/ijef.A2571.04010524
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The role of finance is indispensable for business entrepreneurs as it fuels both fixed and working capital, driving growth and operational efficiency. Financial decisions are crucial for directing business growth from its inception through various phases. Corporate finance is pivotal in exploring alternative methods to finance fixed and working capital needs. Capital markets, including domestic ones like India’s Securities Exchange Board-regulated and international markets, serve as vital platforms for businesses to secure funding and ensure smooth operations. Effective corporate governance, shareholder wealth maximization, regulatory compliance, profitable project funding, and global brand recognition are key goals for corporations to sustain and thrive. This paper aims to delve into the Overseas Depositories’ role in international capital markets, highlighting their contribution to funding corporations globally. It will also discuss the significance of two-way fungibility in trading shares and depository receipts across borders, and how overseas depositories facilitate finance raising for corporations. Additionally, the paper will examine the trading dynamics of American and Global depository receipts vis-à-vis shares in the international capital market context.
Keywords: Mobilization, Depository, Fungibility, Sponsored, Equity.
Scope of the Article: Capital Markets in Emerging Economies