Later, they will be permitted to list in seven or eight specified overseas jurisdictions.“I had said in May 2020, that the direct listing of securities by Indian companies would be permissible in foreign jurisdictions. "Considering the fact that the Indian economy is on an upswing now, it will allow Indian companies to attract more growth capital. Also, the decision will have great potential to boost the Indian startup industry," Vora said.At present, Indian companies are not allowed to directly list their equity shares on foreign stock exchanges without listing in Mumbai. Likewise, foreign companies cannot directly list their equity shares on Indian stock exchanges.Companies are allowed to access equity capital markets of foreign countries only through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs).A senior finance ministry official said the rules for direct overseas listing would be notified in a few weeks. It had suggested 10 foreign jurisdictions based on strong anti-money laundering frameworks.

Source: Economic Times July 29, 2023 14:57 UTC