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SEBI constitutes Expert Committee to frame rules for direct listing of Indian firms abroad

The committee will examine the economic case for permitting direct listing of Indian companies overseas and listing of Indian companies on foreign bourses in India.

Jun 13, 2018 11:36 IST
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The Securities and Exchange Board of India (SEBI) on June 12, 2018 constituted an Expert Committee to frame rules for direct listing of Indian firms abroad.

Terms of Reference of the Committee:

• Examine the economic case for permitting direct listing of Indian companies overseas and listing of Indian companies on foreign bourses in India.

• Examine various legal, operational and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa.

• Make recommendations for a suitable framework in which to facilitate such direct listing.

Composition of the Expert Committee

Sl. No.

Name

Designation & Institution

1

Ranu Vohra

Co-founder, Managing Director & CEO of Avendus Capital Pvt. Ltd.

2

Cyril S Shroff

Managing Partner at Amarchand Mangaldas

3

Kamal Yadav

Managing Director of Morgan Stanley’s Technology, Media and Telecom Banking

4

S. Ramesh

Managing Director & CEO, Kotak Investment Banking

5

Neeraj Bhargava

Senior Managing Director &  CEO, Zodius Capital Advisors

6

Deep Kalra

Chairman & Group CEO, MakeMyTrip.com

7

Rajiv Gupta

Partner at Singapore’s Latham & Watkins LLP

8

Jamil Khatri

Global Head of Accounting Advisory Services, KPMG, LLP

9

Sujit Prasad

Executive Director, Securities and Exchange Board of India (Convener)

What led to the constitution of this Expert Committee?

Today, companies incorporated in India can list their debt securities on international exchanges, however, their equity share capital can be listed abroad only through the American Depositary Receipt (ADR) / Global Depositary Receipt (GDR) route.

Similarly, companies incorporated outside India can access the Indian capital markets only through the Indian Depository Receipt (IDR) route. The direct listing of equity share capital of companies incorporated in India is not permitted on foreign exchanges and vice versa.

Considering the internationalisation of the Capital Markets, the market regulator mulled over facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa.

 

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