The government may soon allow Indian companies to do direct listing abroad, reported The Times of India. The move will enable the Indian firms, particularly startups and unicorns, access to a larger capital pool.
While detailed discussions have taken place regarding the proposal a formal decision has not been made yet, the paper reported citing people aware of the development.
The government expects that the proposed move along with the reduction of corporate tax to 15 percent for new manufacturing firms will allow Indian firms to go global, the report added. Further, the centre hopes such a step will also end the practice of Indian firms to register in foreign locations such as Singapore, added the report.
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“It will allow Indian companies to tap a new pool of investors, other than Indian investors or foreign portfolio investors, many of whom may not have come to India,” Edelweiss Group chairman Rashesh Shah was quoted as saying in the report.
Source: CNBC TV18
