Indian companies may be allowed to list in 7 countries |
The Indian government is set to notify seven countries by doing away with the dual listing system. Gujarat International Finance-Tec (GIFT) City paves the way for a global listing by the likes of Reliance Jio, LIC, and Indian start-ups. The government is also trying to ease several other norms to facilitate the process. The Ministry of Corporate Affairs and the Department of Economic Affairs have agreed to do away with the contentious clause of dual listing, which required a company to list in India as well as overseas. So, a company can directly list in one of the seven markets including – the US, the UK, and Japan. While the list will be expanded later, Hong Kong is a notable exclusion due to India`s border tension with China. Several companies have opted to list in Hong Kong, which is a financial hub in the region. Exchanges operating in the International Financial Centre at GIFT City, which have tie-ups with overseas bourses, can facilitate the stock being traded abroad as well. For instance, if NSE or BSE ties up with SGX, it can help shares of an Indian company to be traded on the exchange in the GIFT City as well as Singapore. As a first step, the Indian government has amended the Companies Act to be followed by umbrella guidelines by the finance ministry and rules for unlisted companies by MCA and those for listed entities by Sebi.
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