Mumbai: Capital markets regulator Securities and Exchange Board of India, or Sebi, is looking at ways to smoothen the procedures for listing companies on various bourses in India and abroad, its chairman C.B. Bhave said on Monday.
“It is our belief that companies which are listed abroad would be interested to come to the Indian market. Similarly, Indian companies, which have operations in other countries, would be interested in listing abroad. We want to see how to smoothen this process,” Bhave said, adding that the US and European markets were already making serious efforts to promote cross-listing of companies.
The market regulator’s comments came close on the heels of the remarks of New York Stock Exchange Euronext’s chief Duncan L. Niederauer that the exchange was considering listing in Asian markets, including India.
On listing of foreign companies on Indian bourses, Bhave said this was yet to happen. “Even after formulating regulations for Indian depository receipts, a way by which foreign corporates can have an exposure to this market, we are yet to get a response.”
Sebi also reduced the filing fee for offer documents on Monday. It will now charge a fee of Rs25,000 for public issues less than or equal to Rs10 crore. Public issues of more than Rs10 crore but less than or equal to Rs1,000 crore will be charged up to 0.125% of the total offer. Any issues above Rs5000 crore will be charged a flat fee of Rs3 crore.
These amendments, which also reduce fees for custodians to 0.0005% from 0.001%, will become effective from 1 April, the regulator said.
The markets watchdog has additionally cut the registration fees to be paid by mutual funds to Rs25 lakh from Rs50. It has also slashed the filing fees for mutual funds to 0.005% of the amount raised through new fund offers, subject to a minimum of Rs1 lakh and a maximum of Rs50 lakh.
Venture capital funds will now have to pay Rs5 lakh as registration fees as opposed to Rs10 lakh previously.