Skip to main content

SEBI panel proposes direct listing of Indian firms on foreign bourses

By
An expert committee set up by the Securities and Exchange Board of India (SEBI) on Tuesday recommended that the market regulator allow listing of Indian companies on foreign exchanges even without getting listed in India. Such a framework would help Indian companies to access foreign capital at lower cost, said the report. Under the current regulations, any company incorporated in India but not listed on an Indian exchange is not permitted to list its shares on a foreign stock exchange. Similarly, companies incorporated outside India cannot directly list their equity shares on Indian stock exchanges. The committee in its 29-page report also advised the security markets regulator to allow foreign companies to get directly listed in Indian stock exchanges.
SEBI has sought comments on the report by December 24 "Listing may be allowed only on specified stock exchanges in 'permissible jurisdictions'," read the report submitted to SEBI. A "permissible jurisdiction" would mean a jurisdiction which has treaty obligations to share information and cooperate with Indian authorities in the event of any investigation. The exchanges where Indian companies can list their shares as per the report include the NASDAQ, NYSE in the US, the Shanghai Stock Exchange and Shenzhen Stock Exchange in China, the London Stock Exchange and the Hong Kong Stock Exchange, among others.
The report further said: "As regards listing of a listed Indian company on foreign stock exchanges, such a company shall comply, at all times, with rules/regulations/laws/initial and continuous listing/disclosure requirements, as are applicable to companies listed in India." Companies incorporated in India, under the present legal framework, have to list their debt securities on foreign stock exchanges directly through the "masala" bonds or foreign currency convertible bonds. On the other hand, companies incorporated outside India can access the Indian capital markets only through the Indian Depository Receipts framework.
According to the panel, along with allowing cheaper access to foreign capital for Indian firms, the permission for listing would also in turn help the Indian economy grow further. "Similarly, equity listings of companies incorporated outside India on Indian Stock Exchanges would improve the efficient allocation of capital and diversification for investors across the Indian economy," said the report. SEBI had constituted the committee to look into the prospects of Indian companies getting directly listed on foreign exchanges on June 12.
The Business standard, 05th December 2018

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more