The move is expected to help the companies meet their foreign exchange requirements and at the same time ease pressure on the domestic currency
Faced with the sliding rupee, the government is considering allowing unlisted companies to launch public offers in overseas markets and raise funds in foreign currency.
“The proposal to allow unlisted companies to list on overseas stock exchanges through Initial Public Offering (IPO) is being considered,” a senior finance ministry official said.
Under the current norms, only those companies that are listed on the domestic stock exchanges are permitted to list on bourses overseas.
The move is expected to help the companies meet their foreign exchange requirements and at the same time ease pressure on the domestic currency, which has been touching new lows over the past couple of months.
“It would also help in reducing pressure on the CAD as such companies will either bring in the foreign exchange or utilise the proceeds to meet their own requirements,” the official added.
The proposal will also help companies gain access to other markets at a time when the domestic stock market is witnessing massive sell-offs.
The BSE 30-stock index, Sensex, has lost around 1,500 points in the last four trading sessions amid the weakening of the domestic currency.