Unlisted companies can opt for overseas listing-says Ministry of Finance

Unlisted companies can opt for overseas listing

Ministry of Finance has allowed unlisted companies which are incorporated In India to opt for listing abroad and to raise funds without the requirement of prior listing in India. The scheme is allowed for an initial period of two years on a pilot basis.

 

 The approval to list abroad is subject to the following conditions:

 

  • Unlisted companies may be allowed to list abroad only on exchanges in IOSCO/FATF compliant jurisdictions or those jurisdictions with which SEBI has signed bilateral agreements;
  • The Companies shall file a copy of the return which they submit to the proposed exchange/regulators also to SEBI for the purpose of Prevention of Money Laundering Act (PMLA). They shall comply with SEBI’s disclosure requirements in addition to that of the primary exchange prior to the listing abroad;
  • While raising resources abroad, the listing company shall be fully compliant with the FDI Policy in force;
  • The capital raised abroad may be utilized for retiring outstanding overseas debt or for operations abroad including for acquisitions;
  • In case the funds raised are not utilized abroad as stipulated above, such companies shall remit the money back to India within 15 days and such money shall be parked only in AD category banks recognized by RBI.

 

Source: Ministry of Finance

Comments

comments

SREENU .T
 

Click Here to Leave a Comment Below 0 comments