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

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...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more