Indian companies will be able to directly market foreign markets

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Mumbai- Indian companies will soon be able to raise money by getting listed directly on foreign stock exchanges. A top-level panel on Tuesday suggested the capital market regulator, Securities and Exchange Board of India (SEBI) to do so. The panel recommended that Indian companies be allowed directly in foreign exchange exchanges and foreign companies should be listed in India. Listing in foreign stock exchanges of companies made in India will make it easier to raise funds for them.

At present, Indian companies list their shares abroad through Global Depository Receipts (GDRs). While foreign companies list their shares in India by choosing the path of Indian Depository Receipt. Apart from this, Indian companies can list their debt securities directly in international exchanges through a securities transaction known as ‘Masala Bond’.

In its 26-page report, the committee suggested Indian companies to allow foreign companies to be listed directly in India. It was suggested that under the framework, the list of ‘approved areas’ should be allowed only on the stock exchanges. ‘Approved areas’ include those countries with whom a treaty has been signed to share information and support in case of any kind of investigation.

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