Govt eases norms for cos planning overseas listing
By PTI |
NEW DELHI: Companies going for overseas listing can now breathe easy, as the Government has amended the ADR/GDR norms to allow them such issues for companies going for simultaneous listing of their shares or follow-on offers in international capital market.
However, the companies have to take the permission of market regulator SEBI and make the follow on offer within 30 days.
In a notification, the Finance Ministry said companies going in for an offering in the domestic market and a simultaneous or immediate follow on offering through ADR (American (depository Receipts)/GDR (Global Depository Receipts) issues would be exempt from the requirement of the revised pricing guidelines.
The change in ADR/GDR comes after representation from India Inc on the pricing norms. However, the ministry said simultaneous or immediate follow on offering in the ADR/GDR market will have to take SEBI's approval for the percentage to be offered in the domestic and ADR/GDR markets.
While amending the norms for listed companies, the ministry said unlisted companies already having Global Depository Receipts or Foreign Currency Convertible Bonds in the international market, will have to list in the domestic market by March 31, 2006.
However, the companies have to take the permission of market regulator SEBI and make the follow on offer within 30 days.
In a notification, the Finance Ministry said companies going in for an offering in the domestic market and a simultaneous or immediate follow on offering through ADR (American (depository Receipts)/GDR (Global Depository Receipts) issues would be exempt from the requirement of the revised pricing guidelines.
The change in ADR/GDR comes after representation from India Inc on the pricing norms. However, the ministry said simultaneous or immediate follow on offering in the ADR/GDR market will have to take SEBI's approval for the percentage to be offered in the domestic and ADR/GDR markets.
While amending the norms for listed companies, the ministry said unlisted companies already having Global Depository Receipts or Foreign Currency Convertible Bonds in the international market, will have to list in the domestic market by March 31, 2006.
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