Govt likely to allow Indian companies list their equity shares overseas


PTI, Jan 27, 2020, 2:15 PM IST

New Delhi: The government is likely to soon decide on permitting Indian companies to list their equity shares overseas, according to an official.

Apart from providing an additional fundraising avenue for the corporates looking to expand and boost their business activities, an overseas listing of shares would also help in bringing more capital into the country.

The official said many companies are interested in listing their equity shares in foreign countries.

Currently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs).

The official said the corporate affairs ministry and markets regulator Sebi are in favour of allowing Indian companies to list their equity shares in foreign countries.

Other departments and regulators are also expected to be on board, the official added.

A decision is likely soon, the official said, adding that changes would need to be done in the companies law and Sebi regulations for permitting listing of domestic companies overseas.

Further, the official said that only public companies are likely to be given permission for an overseas listing of equity shares.

Under the Companies Act, public companies should have at least seven shareholders and have no restriction on transferability of their shares, among other criteria.

A depository receipt is a foreign currency-denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes GDRs.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Gold prices crash by Rs 3,350 after govt cuts custom duty on bullion

Greater Bengaluru Governance Bill tabled in Karnataka Assembly

Budget 2024-25: Customs duty exemption on key cancer drugs to reduce cost

Karnataka HC grants bail to 2 accused in M M Kalburgi murder case

SC rules out cancellation, re-test of controversy-ridden NEET-UG 2024

Major fire on merchant navy ship off Karnataka coast extinguished, says Coast Guard

‘Kursi Bachao Budget,’ Rahul Gandhi slams Modi govt

Related Articles More

Gold prices crash by Rs 3,350 after govt cuts custom duty on bullion

Air India Express inaugurates its maiden international flight from Bengaluru to Abu Dhabi

Relief for salaried class under new tax regime; 50 pc hike in standard deduction to Rs 75,000

Govt slashes import duty on mobile phones, chargers, some components

Budget 2024-25: Markets turn highly volatile amid Budget presentation

MUST WATCH

Brahma Kumaris

Tapta Mudra Dharana

Banana Farming

Aghnashini River

Dr. Rajkumar


Latest Additions

Cooperative Society Amendment Bill passed in Karnataka Assembly amid BJP’s walkout

Davanagere: Catholic priest killed in road accident

Karnataka neglected in Union Budget, says CM Siddaramaiah

Gold prices crash by Rs 3,350 after govt cuts custom duty on bullion

Greater Bengaluru Governance Bill tabled in Karnataka Assembly

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.