MCA greenlights direct foreign listing for select unlisted companies
reported that the union government is planning to allow Indian companies to list overseas directly. Speaking at an event in Mumbai, the finance minister Nirmala Sitharaman said the government has decided to allow companies to list at the International Financial Services Center (IFSC) GIFT City to start with before expanding this to other countries.
Allowing direct listing of public limited companies in select foreign markets will enable new-age companies with disruptive business models to raise capital abroad if they feel domestic investors are taking time to develop an interest in them or have limited risk appetite. Such companies can get listed abroad on their own strength.
The move seeks to improve the ease of doing business. Public limited companies are those which are subject to higher reporting and compliance obligations than private limited companies, which benefit from a simpler regulatory regime.
The government had first announced the foreign listing plan of Indian companies in 2020, as part of a pandemic relief package. Currently, Indian companies can raise money abroad through American Depository Receipts (ADR) and Global Depository Receipts (GDR).
. Read more on livemint.com
