Mumbai: Union Finance Minister Nirmala Sitharaman has said that Indian companies can now be directly listed on foreign stock exchanges.
In May 2020, the central government announced that as part of the Covid relief package, companies could be directly listed on foreign capital markets. But the related rules were not published in the notification.
Indian companies are able to raise capital through foreign stock exchanges as they are allowed to be registered abroad directly.
“It has also been decided to allow registered and unregistered companies to raise capital through the International Financial Services Center (IFSC)in Gujarat,” said Nirmala.
She said that due to this decision, global capital markets will be available to the country’s companies. The rules for direct listing of Indian companies on foreign stock exchanges will be published in a notification in a few weeks, an official said.
As per existing rules, domestic companies resort to American Depository Receipts (ADR) and Global Depository Receipts (GDR) to raise capital from foreign capital markets. Infosys and Wipro have also raised capital through these.
Experts believe that the Centre’s new move will help Indian startups with a market value of more than US$1 billion (Rs.8,224 crore).
