In what could be termed as a move to make Indian companies global, the Ministry of Corporate Affairs (MCA) released a notification permitting certain classes of public companies to directly list on foreign stock exchanges, effective Oct. 30.
Certain classes of Indian public companies can now issue securities for the purpose of listing on foreign stock exchanges. The MCA is expected to issue rules and regulations to give effect to this notification.
The amendments to sections of the Companies Act were proposed in September 2020. The amendment says, “Such class of public companies may issue such class of securities for the purposes of listing on permitted stock exchanges in permissible foreign jurisdictions or such other jurisdictions, as may be prescribed.”
The central government will clarify which classes of public companies will be permitted to be listed on foreign exchanges. Read more.
