ADR(American Depository Receipt)

An American Depository Receipt ("ADR") is a physical certificate evidencing ownership of American Depositary Shares ("ADSs"). The term is often used to refer to the ADSs themselves.
An American Depositary Share ("ADS") is a U.S. dollar denominated form of equity ownership in a non-U.S. company. It represents the foreign shares of the company held on deposit by a custodian bank in the company's home country and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate.
One or several ADSs can be represented by a physical ADR certificate. The terms ADR and ADS are often used interchangeably.
ADSs provide U.S. investors a convenient way to invest in overseas securities and to trade non-U.S. securities in the U.S. ADSs are issued by a depositary bank, such as JPMorgan Chase & Co. They are traded in the same manner as shares in U.S. companies, on the New York Stock Exchange ("NYSE") and the American Stock Exchange ("AMEX") or quoted on NASDAQ and the over-the-counter ("OTC") market.
Although ADSs are U.S. dollar denominated securities and pay dividends in U.S. dollars, they do not eliminate the currency risks associated with an investment in a non-U.S. company.

ADRs eliminate many of the obstacles of holding non-U.S. securities since they trade and settle according to U.S. market practices. They are quoted and traded and pay dividends in dollars. They eliminate custodian safekeeping charges in the issuer's home country and facilitate prompt dividend payments and corporate action notifications.

HDFC Bank has a ratio of 1 ADR:3 Ordinary Shares. Each ADR is backed by a specific number of the issuer's local shares or a fraction thereof. This is called the ADR ratio, which is designed to set the price of each ADR in U.S. dollars in a price range competitive to the share price of the issuer's U.S. peer group.

J.P. Morgan Chase Bank N.A. is the depositary bank for HDFC Bank. HDFC Bank ADRs are backed by registered shares held under custody in India in JPMorgan's name on behalf of HDFC Bank ADR holders. As the depositary bank, JPMorgan performs the roles of registrar, transfer agent, record keeper and dividend paying agent. 

There are two ways to hold ADRs. Either through your usual bank or broker, in which case you are a "beneficial holder". Alternatively, directly through JPMorgan Chase Bank as ADR depositary, in which case you are a "registered holder". You are then included in the company's ADR holder register that is maintained by HDFC Bank's ADR depositary, JPMorgan. Registered holders of HDFC Bank ADRs may hold their ADRs either physically in the form of a certificate or in dematerialized (book entry) form, evidenced by an account statement.

You can purchase HDFC Bank ADRs through a U.S.-registered stock broker, just as you would purchase U.S. securities.

If you opt to be a registered holder, you may contact JPMorgan Chase Bank, HDFC Bank's ADR depositary bank, at 866 367 6354 (toll-free) or +1 651 453 2128 (from outside the U.S.) or write to:

JP Morgan Chase Bank N.A.
P.O. Box 64504
St Paul, Minnesota 55164-0504
USA

Registered holders of HDFC Bank’s ADRs may conduct transactions online by going to JPMorgan's website www.adr.com | "Investors" and selecting "Access My Account". For account access details please contact JPMorgan.

HDFC Bank ADRs are listed and quoted on the NYSE under the symbol HDB.

You can find the ADR price either on the NYSE website or on J.P. Morgan’s website http://www.adr.com

You receive dividends just like you do for any US security you hold.

The ADR dividend for financial year 2020-21 was paid to the ADR holders on August 19, 2021.

Please refer to the attached link on our ADR program and click on dividend to be able to get further information :-

https://adr.com/drprofile/40415F101

No, ADR holders do not have any voting rights on the ADR.

You may cancel your ADRs to receive Indian shares. In order to do so, you must have a specific Indian securities account to receive the same.

The normal procedure is to ask your U.S. broker to cancel the ADRs and deliver the corresponding ordinary shares to your own securities account in India.

As a depositary bank, JPMorgan may charge the broker up to 5 cents per ADR issued or cancelled. The broker may have additional costs for this transaction.