Indian cos may get to tap overseas equity markets

LONDON: India may soon allow its companies to go in for a primary listing in overseas exchanges, relaxing current regulations that require firms to first list in domestic bourses.
"The suggestion has come that companies could seek a primary listing elsewhere if they can assure a secondary listing in India within a certain period," Finance Minister P Chidambaram was quoted as saying by The Times here.
"It is being considered. We will look at it."
At present, Indian companies are required to list equity shares in local markets and simultaneously issue American or Global Depositary Receipts (ADRs/GDRs), besides access foreign markets through institutional placements.
The restrictions were placed in order to protect the domestic exchanges.
The report said UK's Chancellor Gordon Brown raised the issue with the Indian government during his visit to India with a British trade delegation this month.
There is a growing equity culture in India -- a fact reflected in Chidambaram's comments.
"Our primary concern is that when a company lists it attracts investors with the promise that it will share in the wealth that the company creates," he said, adding that "We want Indian investors to share in that wealth."