SEBI panel to study option of direct overseas listings

The Securities and Exchange Board of India (SEBI) has constituted an expert committee to examine the possibility of allowing unlisted Indian companies to directly list equity overseas while also allowing foreign companies to list directly on the Indian bourses.

“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,” SEBI said in a statement.

The nine-member panel will include Ranu Vohra, MD & CEO, Avendus Capital, Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas, Kamal Yadav, MD, Morgan Stanley, S Ramesh, MD & CEO, Kotak Investment Banking, Deep Kalra, Chairman, and Jamil Khatri of KPMG.

Currently, Indian firms can only use the depository receipts route — American Depository Receipt (ADR) or Global Depository Receipt (GDR) — to list on overseas exchanges. For foreign companies wanting to list on Indian exchanges, the Indian Depository Receipt (IDR) is the only option currently.

Masala bonds, IDRs

“Companies incorporated in India can today list their debt securities on international exchanges (masala bonds) but their equity share capital can be listed abroad only through the ADR/GDR route.

Similarly, companies incorporated outside India can access the Indian capital markets only through the IDR route,” SEBI observed in the statement.

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Printable version | Jan 20, 2022 11:11:40 AM |

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