Abstract
Statement of Problem: A study focused on the premium enjoyed by listed American Depository Receipts (ADR) of Indian companies. This research paper examines the various policies adopted by Government of India to reduce the premium on ADRs and the impact of such policy changes. Sources of Data: For the purpose of this study, data collected from website of Bombay Stock Exchange, Yahoo Finance and Federal Reserve. Conclusions Reached: There is no single pattern found in the analysis of the premium level of ADRs listed on US stock exchanges. However, most of the companies analyzed have stabilized the premium levels on ADR after such policy reforms.