Now, India Inc can go for foreign listing
The move helps domestic firms access capital from the world markets; Initially, the plan is to allow cos to list at GIFT City, later they can list in any of the 8 to 9 specified overseas jurisdictions
Earlier Sebi had proposed allowing listings on stock exchanges in 10 permissible jurisdictions including the NYSE, Nasdaq, the LSE and Hong Kong, along with other major exchanges in Japan, South Korea, France, Germany, Switzerland and Canada
New Delhi: In a significant move, the government has permitted Indian companies to list on foreign exchanges, subject to certain conditions. The Corporate Affairs Ministry has notified the relevant section under the Companies Law in this regard. Currently, overseas listings by local listed entities are carried out through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).
“In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 30th day of October 2023 as the date on which the provisions of section 5 of the said Act shall come into force,” the ministry said in a notification on October 30.
The rules for direct overseas listing of Indian companies are yet to be notified. Section 5 allows certain classes of public companies to list their securities on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed. On October 13, a senior government official said the ministry was looking at various aspects, including the possible eligibility criteria, to prepare the rules for the direct overseas listing of companies.
