A high-level panel on Tuesday recommended market regulator Sebi to allow direct listing of Indian companies on overseas bourses and of foreign firms on Indian exchanges.
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.
Moreover, Indian firms can list their debt securities directly on international exchanges through a security instrument known as ‘Masala Bonds’.
In its 26-page report, the committee has suggested for direct listing of Indian companies overseas and vice versa. It has recommended that the framework should allow listing only on specified stock exchanges in ‘Permissible Jurisdictions’.
Permissible Jurisdiction, includes a jurisdiction which has treaty obligations to share information and cooperate with Indian authorities in the event of any investigation.
