SEBI committee to look at allowing Indian cos to directly list abroad

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SME Times News Bureau | 13 Jun, 2018
The Securities and Exchange Board of India (Sebi) on Tuesday constituted an expert committee "to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa".

According to the regulator, the committee will examine in "detail the economic case for permitting" such activity.

Besides, it will look into various legal, operational and regulatory constraints in such a move and make recommendations for a suitable framework in which to facilitate such direct listing.

"Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa," SEBI said.

Presently, direct listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa.

Accordingly, companies incorporated in India can list their debt securities on international exchanges (Masala Bonds) but their equity share capital can be listed abroad only through the ADR (American Depositary Receipt) or GDR (Global Depository Receipt) route.

Similarly, companies incorporated outside India can access the Indian capital markets only through the IDR (Indian Depository Receipt) route.