Lok Sabha Question No. 1738 (UNSTARRED), answered on 2020-03-02
Subject: Overseas Listing of Indian Companies
Ministry: CORPORATE AFFAIRS
Asked by: Sudheer Gupta, Shrirang Appa Barne, Feroze Varun Gandhi, Gajanan Chandrakant Kirtikar, Bidyut Baran Mahato, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 1738 ANSWERED ON MONDAY, THE 02 nd  MARCH, 2020 PHALGUNA 12, 1941 (SAKA)

## OVERSEAS LISTING OF INDIAN COMPANIES QUESTION

1738.  SHRI SUDHEER GUPTA:

SHRI SHRIRANG APPA BARNE:

SHRI FEROZE VARUN GANDHI:

SHRI GAJANAN KIRTIKAR:

SHRI BIDYUT BARAN MAHATO:

SHRI SANJAY SADASHIV RAO MANDLIK:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) whether the Government proposes to permit the Indian Companies to list their equity share overseas and if so, the details thereof along with the aims and objectives thereto;
- (b) the time by which the said decision is likely to come into force;
- (c) whether the said proposal is likely to boost the Indian economy and if so, the details thereof;
- (d) whether there is any Indian company that has its equity shares listed abroad at present and if so, the details thereof including startups;
- (e) the number and names of the companies who have shown interest in the Government' s proposal;
- (f) whether the government has any information on startups willing to be a part of it and if so, the number of startups and the details thereof; and
- (g) the other steps taken/being taken by the Government to boost the Indian
- economy?

## ANSWER

THE MINISTER OF STATE FOR FINANCE             (SHRI ANURAG SINGH THAKUR) AND CORPORATE AFFAIRS ( श्री अनुराग स ंह ठाकु र )

वित्त एिं कॉपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(a)  to  (g):-  The  Securities  and  Exchange  Board  of  India  (SEBI)  under  the

Department of Economic Affairs (Ministry of Finance) had constituted on June

12, 2018 an Expert Committee to study the issue of listing of equity shares of companies incorporated in India on foreign stock exchanges and of companies incorporated  outside  India  on  Indian  stock  exchanges.  The  committee  has, inter-alia, recommended that listing of equity shares of companies incorporated in  India  on  foreign  stock  exchanges  may  be  allowed  on  specified  stock exchanges in Permissible Jurisdictions subject to certain terms and conditions. The  Ministry  of  Finance,  (Department  of  Economic  Affairs),  Ministry  of Corporate Affairs, Securities and Exchange Board of India and Reserve Bank of India  etc.  are  involved  to  examine  and  implement  framework  to  carry  out necessary  amendments  for  enabling  such  listing.    The  listing  of  Indian companies in foreign stock exchanges is likely to increase the competitiveness of Indian companies in terms of access to capital, broader investor base and better valuations thus benefiting the health of the Indian economy. As per the Expert  Committee  report  the  following  additional  advantages  to  the  Indian economy are expected to be:-

- (i) Boost to the 'Brand India' globally;
- (ii) Increased attractiveness for the growing Indian technology sector;
- (iii) Competitive pressures to stimulate efficiency and growth;
- (iv) Development of finance services as a high-value added export;
- (v) Improved economic relations with other countries etc.

Further, the Department of Economic Affairs vide its letter dated 25.02.2020 has informed that they have received communication from only one entity i.e. Softbank group on the proposal of direct listing.  Similarly this Ministry has received communication from the Indian Venture Capital Association.

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