The Indian government is soon considering allowing Indian companies to list in foreign markets. In addition, this initiative may provide an additional way of fundraising for companies looking to expand business activities. Apart from this, the flow of foreign capital in India can also be huge. An official said that many Indian companies are willing to list their equity shares abroad.
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However, some Indian companies have American Depository Receipts (ADRs), which are traded in the US. In addition, some companies have Global Depository Receipts (GDRs). Depository receipts are a means of investment in foreign currency, which are listed on the International Exchange. The same official said that the Ministry of Corporate Affairs and market regulator SEBI are in favor of allowing Indian companies to do equity listing in foreign markets.
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Apart from this, other departments and regulators may also be in favor of this. A decision in this regard can be taken soon. This may require changes in company law and SEBI regulations. The official said that under the new changes, only public companies are expected to be allowed to list equity shares abroad. The same company law should have at least seven shareholders in a public company and there should be no restriction on the transfer of shares.
