The Securities and Exchange Board of India (Sebi) has geared up to make direct listing of Indian companies in overseas markets possible.
- The market regulator has formed a panel of experts to frame rules for making it possible for a company incorporated in India to list its equity share capital on foreign exchanges.
- To this date, direct listing of a company incorporated in India is not possible on a foreign exchange and vice versa.
- The panel will consist of nine members.
- In the evolving and internationally connected capital markets of today, it seems to be a good idea to facilitate companies incorporated in India to directly list their equity share capital abroad and vice versa.
- The only option for Indian firms to list on overseas exchanges, currently is the depository receipts route which has: American Depository Receipt (ADR) or Global Depository Receipt (GDR).
- Similarly, for foreign companies wanting to list on Indian exchanges, the Indian Depository Receipt (IDR) is the only option currently.
- However, the companies incorporated in India can list their debt securities (masala bonds) on international exchanges.
