Govt May Allow Indian Companies To Be Listed Abroad

The government is likely to decide soon on permitting Indian companies to list their equity shares on stock exchanges overseas, a PTI report said citing an official.

Apart from providing an additional fundraising avenue for the Indian corporates looking to expand and boost their business activities, the overseas listing of shares would also help in bringing more capital into the country.

Currently, there are a few Indian companies that have American Depository Receipts (ADRs) (traded in the US) and Global Depository Receipts (GDRs) to raise capital from the international market.

The official said that many companies are interested in listing their shares in foreign markets and the corporate affairs ministry, as well as SEBI, is in favour of permitting them to do so. Other departments and regulators are also expected to be on board.

The report further said that the decision on this is likely to be made soon and changes would be needed to be made to Companies Act as well as SEBI regulations to accommodate the same. Further, only public companies are likely to be given permission for listing equity shares overseas.