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Govt likely to soon decide on permitting Indian companies to list equity shares overseas

27 Jan 2020 Evaluate

The government is likely to soon decide on allowing Indian companies to list their equity shares in foreign countries. Overseas listing of shares would help is providing an additional fund raising avenue for the corporates looking to expand and boost their business activities along with help in bringing more capital into the country. Many companies are interested in listing their equity shares in foreign countries.

Presently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs). The corporate affairs ministry and markets regulator SEBI are in favour of allowing Indian firms to list their equity shares overseas. Other departments and regulators are also expected to be on board.

A decision is likely soon and changes would need to be done in the companies law and SEBI regulations for permitting listing of domestic companies overseas. Further, only public companies are likely to be given permission for overseas listing of equity shares. A depository receipt is a foreign currency denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes GDRs.

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