The Securities and Exchange Board of India (Sebi) on Tuesday constituted an expert committee to recommend suitable framework to allow direct listing of Indian companies overseas while also allowing overseas companies to list directly on the Indian bourses.
“Considering the evolution and internationalisation 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,” said a Sebi statement.
The nine-member expert committee set up by the regulator comprises Ranu Vohra, managing director and chief executive officer, Avendus Capital; Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas; Kamal Yadav, Managing Director, Morgan Stanley and S. Ramesh, Managing Director and CEO, Kotak Investment Banking; Deep Kalra, Chairman, MakeMyTrip.com and Jamil Khatri, KPMG, among others.
The broad terms of reference of the committee will 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 make recommendations for a suitable framework in which to facilitate such direct listing.
Currently, Indian companies can only use the depository receipts route – American Depository Receipts (ADR) or Global Depository Receipts (GDR) – to list on the overseas exchanges. Similarly, foreign companies can access the Indian capital markets only through the Indian Depository Receipts (IDR).
Panel set up for startups’ listing
Mumbai: Sebi has constituted a group to look into the existing framework on Institutional Trading Platform (ITP) and suggest measures to facilitate listing of startups. Sebi said it had put in place the ITP framework in 2015 with a view to facilitate listing of new age companies in sectors like e-commerce, data analytics, bio-technology and other startups. However, this framework failed to gain any traction.
After a discussion with various stakeholders, the regulator has now formed a group comprising representatives from the Indian Software Product Industry Round Table (iSPIRT), The Indus Entrepreneurs (TIE), the Indian Private Equity and Venture Capital Association (IVCA), law firms, merchant bankers, and stock exchanges to look into ITP framework. —ENS