India may soon allow its companies to go in for a primary listing in overseas exchanges, relaxing current regulations that require firms to first list in domestic bourses.“The suggestion has come that companies could seek a primary listing elsewhere if they can assure a secondary listing in India within a certain period,” Finance Minister P Chidambaram was quoted as saying by The Times here. “It is being considered. We will look at it.” At present, Indian companies are required to list equity shares in local markets and simultaneously issue American or Global Depository Receipts (ADRs/ GDRs), besides access foreign markets through institutional placements.The restrictions were placed in order to protect the domestic exchanges.The report said UK’s Chancellor Gordon Brown raised the issue with the Indian government during his visit to India with a British trade delegation this month. There is a growing equity culture in India — a fact reflected in Chidambaram’s comments. “Our primary concern is that when a company lists it attracts investors with the promise that it will share in the wealth that the company creates,” he said, adding that “We want Indian investors to share in that wealth.” Meanwhile, speaking on the Indian banking sector, Chidambaram described it as the driving force of economic reforms, though New Delhi is still to fully open the sector to foreign financial institutions. Lauding the incredible reach of its public sector banks, he said: “The success of the economic reforms is there for all to see and the driving force of the economic reforms is the banking sector.”Chidambaram, who was speaking at the Golden Jubilee celebrations of the UK operations of Bank of Baroda here last night, had earlier assured British investors that New Delhi would soon push through bills pertaining to reforms in pension and insurance sectors.Overseas investors, including in the UK and the US, have for long been seeking access to India’s financial markets, but reforms have been slow to come owing to pressures from coalition partners.Chidambaram said in the current year, the growth rate of India is nearing 9 per cent and this could be maintained and improved upon, he said.“India is firing on all cylinders and one can see hunger and drive in every section (to achieve progress) and we must continue this for the next 15-20 years and it is possible,” he added.Lord Swraj Paul, British ambassador for Overseas Business, Piara Singh Khabra, Labour MP and a large number of NRI businessmen and industrialists were present on the occasion.
