SEBI to ease procedures for cross-listing of firms
The stock market regulator is considering measures to ease procedures for cross-listing of companies on exchanges in India and abroad.
Securities and Exchange Board of India Chairman CB Bhave told reporters that the US and European markets were already making serious efforts to promote cross-listing of companies.
“It is our belief is that companies which are listed abroad would be interested to come to the Indian market. We want to see whether cross listings can be facilitated,” Bhave said. “Similarly, Indian companies which have operations in other countries would be interested in listing abroad. We want to see how to smoothen this process,” he said.
The Indian Depositary Receipts, the instrument with which foreign companies can list in India, has been a non-starter since it was announced three years ago.
Bhave said SEBI is willing to consider suggestions to make IDR issues a reality. Integration within Asia was happening at a fast pace and investment flows into Asian countries was not just into equity markets, Bhave said. “Flows are not only in terms of investment in capital markets. There are different kinds of capital flows like trade flows,” he said. The regulator was keen to safeguard the interests of investors and would encourage innovation in the market, Bhave said. On foreign institutional investors’ (FIIS’) collateral investment, he said SEBI would hold a meeting with FIIs, the custodians and all institutional participants before finalising any regulation.
His comments came close on the heels of remarks of New York Stock Exchange Euronext CEO Duncan L Niederauer that the exchange was considering listing in Asian markets, including India.