Indian companies allowed to list directly on foreign stock exchanges: Centre | Markets News
Indian companies can list on foreign bourses directly
New Delhi: The Indian companies have been given the permission to list on foreign exchanges, subject to certain conditions, the Union corporate affairs ministry has confirmed. Currently, the listing of domestic entities are done 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 Union corporate affairs ministry said in a notification.
The move allows certain Indian companies to get listed in permitted foreign jurisdictions starting with the International Finance Service Centre (IFSC) in Gift City, Gujarat.
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The decision to allow Indian companies to get listed on foreign stock markets was taken after Union Finance and Corporate Affairs Minister Nirmala Sitharaman in July said the government has agreed to allow domestic companies to list overseas to help them access capital from the world markets.
What SEBI said on foreign stock exchanges
The Securities and Exchange Board of India (SEBI) earlier recommended that Indian companies could be given to list on foreign markets, including NYSE, Nasdaq, the LSE and Hong Kong, and other stock exchanges in Japan, South Korea, France, Germany, Switzerland and Canada.
In July 2022, Prime Minister Narendra Modi laid the foundation stone of IFSCA headquarters at GIFT City in Gandhinagar. The PM also launched India’s first International Bullion Exchange – IIBX at GIFT City.
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“GIFT city (Gujarat International Finance Tec-City) was envisaged as an integrated hub for financial and technology services not just for India but for the world. IFSCA is the unified regulator for the development and regulation of financial products, financial services and financial institutions in International Financial Services Centres (IFSCs) in India. The building has been conceptualised as an iconic structure, reflective of the growing prominence and stature of GIFT-IFSC as a leading International Financial Centre,” the government has said.
