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GANDHINAGAR: Indian companies looking to raise funds from the capital markets through share issuances will soon have the option to do so directly in jurisdictions outside of India.
This will initially be available through a facility to be made available at the International Financial Services Centre (IFSC) at the Gujarat International Finance Tec-City in Gandhinagar, according to Finance Minister Nirmala Sitharaman.
The Finance Minister made these observations on July 29. Currently, companies desiring to list abroad must first be listed in India. They can then issue depository receipts, which can be listed in foreign markets.
The Government has received feedback that the current system favours companies that are well-established and have a certain size on the domestic bourses, according to a Finance Ministry official.
The ability to list abroad directly would be lucrative to some companies, which feel that their business models would attract better valuations in markets abroad, the official added.
