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The two way fungibility means that the Depository Receipts (ADRs/GDRs) can be converted into underlying shares & underlying shares can be converted into Depository Receipts. Every Depository Receipt has underlying shares backing it. The Depository Receipt is issued & traded outside the country of the issuer, but the underlying shares backing the receipts are lodged in custody with a custodian in the country of the issuer.

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