Sebi must clarify new foreign listing rules

Author: Ashley Lee | Published: 18 Dec 2013
  • New Indian rules will permit local companies without a domestic listing to list global depositary receipts and American depositary receipts overseas for a period of two years;
  • This development likely stems from the country’s need to bring in foreign capital to stabilise the rupee, which saw periods of volatility this year;
  • But more clarity is needed regarding Sebi’s local disclosure requirements;
  • The regulator must also clarify whether foreign-listed companies will be forced to list in India following the two-year period.

India’s new rules allowing local companies without a domestic listing to list overseas have generated excitement, but market participants believe that more clarity is needed.

On September 27, the Ministry of Finance announced a two-year pilot programme that allows unlisted Indian companies to raise capital abroad...