Mother's Day Offer- Use Code MOTHER24

Register Now

FEMA regulations for direct listing on international exchanges have been released by RBI

Published on April 26, 2024
Current Context: The Reserve Bank of India (RBI) has recently introduced Foreign Exchange Management Act (FEMA) regulations to simplify the process of Indian companies directly listing on international stock exchanges.
FEMA regulations for direct listing on international exchanges have been released by RBI
  • These regulations cover aspects such as payment methods, reporting requirements, and the handling of funds raised through listings.
  • This move by the RBI is expected to benefit Indian companies in several ways:
    • Easier Access to Global Capital Markets: By facilitating direct listings, Indian companies can tap into global capital markets more efficiently, allowing them to raise funds and expand their operations internationally.
    • Reduced Bureaucratic Hurdles: The streamlined process will help reduce administrative complexities, making it easier for companies to navigate the listing process.
    • Enhanced Global Competitiveness: Direct listings enable Indian firms to compete more effectively on a global scale. Access to international exchanges provides exposure to a broader investor base and potential growth opportunities.
    • Promotion of Innovation and Growth: By encouraging direct listings, the RBI fosters innovation and growth within the Indian corporate sector.
  • In summary, these FEMA regulations aim to create a conducive environment for Indian companies seeking to list directly on international exchanges, ultimately contributing to their global expansion and success.

Question:

Q.1 How do these FEMA regulations benefit Indian companies?
a. By imposing stricter reporting requirements
b. By encouraging indirect listings through intermediaries
c. By limiting access to global capital markets
d. By reducing administrative complexities
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu