SEBI panel to study option of direct overseas listings

The Securities and Exchange Board of India (SEBI) has constituted an expert committee to examine the possibility of allowing unlisted Indian companies to directly list equity overseas while also allowing foreign companies to list directly on the Indian bourses.

Currently, Indian firms can only use the depository receipts route — American Depository Receipt (ADR) or Global Depository Receipt (GDR) — to list on overseas exchanges. For foreign companies wanting to list on Indian exchanges, the Indian Depository Receipt (IDR) is the only option currently.

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,” SEBI observed in the statement.

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