The Union Cabinet has approved a proposal to allow direct overseas listing of Indian companies. For this framework, an enabling provision would be made under The Companies Act, 2013.
Currently, quite a few Indian companies have American Depository Receipts that are traded in the U.S. Some other corporates have Global Depository Receipts.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
A depository receipt is a foreign currency-denominated instrument, listed on an international exchange and issued by a foreign depository to a domestic custodian.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Apart from providing an additional fundraising avenue for Indian companies looking to expand and boost their business activities, overseas listing of shares would also help in bringing more capital into the country.
Corporate Affairs Secretary Injeti Srinivas said the Companies Act, 2013, will have an enabling provision for listed as well as unlisted companies in India to list their shares abroad. The provision would be subject to certain conditions. "So making this enabling provision...that is the proposal which Cabinet has approved," he said.
According to Srinivas, it would be a broad enabling provision. The class of companies, types of instruments that can be listed and other things would be notified in the rules.
The rollout of the scheme in this regard might take a few months, he added.
"Now, like just you had a scheme for GDR/ADR, what will be the tax treatment and other issues? Most of it (will) get covered in subordinate legislation. It does not involve any amendment per se to the best of my understanding," Srinivas said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
