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SEBI sets up committee to consider allowing Indian companies to directly list abroad

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The Securities and Exchange Board of India (SEBI) has constituted an Expert Committee to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice-versa.
 
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. 
 
"Thus, presently, direct listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa. Considering the evolution and internationalization 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. In this regard, it has been decided to constitute an Expert Committee to look into this aspect in detail," a press release from SEBI said.
 
According to the release, the broad Terms of Reference of the Committee would be to: 
 
--Examine in detail the economic case for permitting direct listing of Indian companies overseas and vice versa;
--Examine various legal, operational and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa; and 
--Make recommendations for a suitable framework in which to facilitate such direct listing.
 
The member of the committee are: Ranu Vohra, Co-founder, Managing Director & CEO; Avendus Capital Pvt. Ltd.; Cyril S. Shroff, Managing Partner; Amarchand Mangaldas; Kamal Yadav, Managing Director, Morgan Stanley’s Technology,Media and Telecom Banking; S. Ramesh, Managing Director & CEO, Kotak Investment Banking; Neeraj Bhargava, Senior Managing Director &  CEO, Zodius Capital Advisors; Deep Kalra, Chairman & Group CEO, MakeMyTrip.com; Rajiv Gupta, Partner, Singapore Latham & Watkins LLP; Jamil Khatri, Global Head of Accounting Advisory Services, KPMG, LLP; and Sujit Prasad, Executive Director, Securities and Exchange Board of India (Convener).
 
NNN
 
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