Direct listing of Indian cos overseas

Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa, the Securities and Exchange Board of India (Sebi) said in a release.

Markets regulator Sebi proposed to allow direct listing of Indian companies on overseas bourses and of foreign firms on Indian exchanges, while setting up an expert panel to look into the details. Currently, Indian companies can list their shares through depository receipts abroad, while foreign companies need to go through the Indian Depository Receipt route for listing of equities.

However, Indian firms can list their debt securities directly on international exchanges as what is known as Masala Bonds.

“Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa,” the Securities and Exchange Board of India (Sebi) said in a release.

“In this regard, it has been decided to constitute an expert committee to look into this aspect in detail,” it added. The committee will examine in detail the economic case for permitting direct listing of Indian companies overseas and vice versa.

Besides, it would examine various legal, operational and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa, Sebi said. The panel will also make recommendations for a suitable framework in which to facilitate such direct listing.

The expert committee would have nine members including Avendus Capital, Managing Director Ranu Vohra, Amarchand Mangaldas, Managing Partner Cyril S Shroff, Kotak Investment Banking Managing Director and CEO S Ramesh, MakeMyTrip. com Chairman & Group CEO Deep Kalra and Zodius Capital Advisors Senior Managing Director & CEO Neeraj Bhargava. Morgan Stanley Managing Director (Technology, Media and Telecom Banking) Kamal Yadav, Latham & Watkins LLP Partner Rajiv Gupta and KPMG and LLP Global Head of Accounting Advisory Services Jamil Khatri are also part of the panel. 

Sebi Executive Director Surjit Prasad would be the convener of the committee.