Govt allows direct overseas listing of Indian companies
New Delhi, November 1
In a significant move, the government has permitted Indian companies to list on foreign exchanges, subject to certain conditions. The corporate affairs ministry has notified the relevant section under the companies law in this regard.
Currently, overseas listings by local listed entities are carried out through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).
“In exercise of the powers conferred by sub-section (2) of Section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government hereby appoints the 30th day of October 2023 as the date on which the provisions of Section 5 of the said Act shall come into force,” the ministry said in a notification on October 30.
The rules for direct overseas listing of Indian companies are yet to be notified.
On October 13, a senior government official said the ministry was looking at various aspects, including the possible eligibility criteria, to prepare the rules for the direct overseas listing of companies.
On July 28, Finance and Corporate Affairs Minister Nirmala Sitharaman said the government has decided to allow domestic companies to list overseas to help them access capital from the world markets.
In May 2020, the move was announced as part of the Covid relief package. — PTI
Guidelines yet to be notified
- Currently, overseas listings by local listed entities are carried out through American Depository Receipts and Global Depository Receipts
- The guidelines for direct overseas listing of Indian companies are yet to be notified
- On July 28, Finance Minister Nirmala Sitharaman said the government had decided to allow domestic companies to list overseas to help them access capital from the world markets
