Tuesday, November 7, 2023

Indian Companies Can Now List Abroad Directly

Wondering how Indian companies can benefit from recent changes in the law that allow them to list their securities on foreign stock exchanges? Here's what you need to know, with reference to the official government notification:

1. Direct Access to Foreign Markets (Refer to Notification S.O. 4744(E) [F.NO. 1/3/2020-CL.I], Dated 30-10-2023):

  • Indian companies can now directly list their securities on foreign stock exchanges.
  • No more need for complicated mechanisms like ADRs, GDRs, or FCCBs to access international capital markets.

2. Streamlined Process (As per Section 5 of the Companies (Amendment) Act, 2020):

  • The new rules simplify the process for Indian companies to list their securities on foreign stock exchanges.
  • This means a quicker and more efficient way to tap into global capital.

3. Government's Support:

  • The Central Government has the power to exempt specific categories of companies from certain provisions of the Companies Act.
  • Any such exemption will be reviewed by both Houses of Parliament.

In a nutshell, these changes open up exciting opportunities for Indian companies to expand globally and access international investors without the usual complexities. It's a game-changer for businesses looking to grow beyond borders!