India has reportedly decided to permit certain classes of public companies to directly list on foreign stock exchanges, a move seen to make Indian companies global.
The federal Ministry of Corporate Affairs (MCA) recently released a notification, paving the way for granting such permissions.
The amendments to sections of the Companies Act, which came into effect on October 30, read: “Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed,” Moneycontrol reported.
Currently, Indian companies will have to obtain Global Depository Receipts (GDR) to access foreign exchanges.
The latest amendments will eliminate the need for GDR.
The central government is expected to clarify which classes of public companies will be permitted to be listed on foreign exchanges soon.
Following the development, certain classes of Indian public companies can now issue securities for the purpose of listing on foreign stock exchanges.
The MCA is expected to issue rules and regulations to give effect to this notification.
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