Home >Markets >Stock Markets >India will not mandate secondary listings for firms joining overseas: Report
In this photo provided by the New York Stock Exchange traders gather at a post on the NYSE trading floor during the direct listing of Asana, Wednesday, Sept. 30, 2020. Wall Street is rallying Wednesday with rising hope that Washington may break through its partisanship to deliver more aid for the economy. (Courtney Crow/New York Stock Exchange via AP) (AP)
In this photo provided by the New York Stock Exchange traders gather at a post on the NYSE trading floor during the direct listing of Asana, Wednesday, Sept. 30, 2020. Wall Street is rallying Wednesday with rising hope that Washington may break through its partisanship to deliver more aid for the economy. (Courtney Crow/New York Stock Exchange via AP) (AP)

India will not mandate secondary listings for firms joining overseas: Report

The report says the Indian government is close to drawing up rules for companies to float overseas without having to first list shares at home, as a way to help startups attain higher valuations and access capital more easily

NEW DELHI : India has decided not to mandate secondary listings for domestic firms that float their shares on a foreign stock exchange as the government prepares a new policy, two senior government sources and two industry executives told Reuters on Thursday.

India is close to drawing up rules for companies to float overseas without having to first list shares at home, as a way to help startups attain higher valuations and access capital more easily.

But concerns grew after officials privately told global investors and companies in meetings they were considering mandating a secondary listing for Indian firms on domestic exchanges, as a way of ensuring investors and markets prospered, Reuters has reported.

Asked about the proposal, a top government official directly involved in the discussion said there would be no mandatory requirement of a secondary listing, however.

"We will not mandate (secondary) India listing," said the official, without explaining why the government changed its stance. He sought anonymity as the discussions were private.

The finance ministry and capital markets regulator SEBI did not immediately respond to a request for comment.

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