Thread: Indian Startups & Listing on Domestic Stock Exchanges - A Regulatory Odyssey
Before 2024:
• 🇮🇳 Indian companies happily listed at home (think NSE & BSE).
• Global companies cannot list in India.
• Indian listed companies?
Free to list abroad directly on certain recognized foreign exchanges, as long as they followed the rules (ADR / GDR).
• Unlisted Indian companies?
Stuck, no overseas listings for them.
January 2024: GAME CHANGER!
• ✨ Unlisted Indian companies can now skip the domestic listing step and head straight to GIFT City for their big debut!
• Hold on, what about listed Indian companies?
Framework for GIFT City not ready yet, but it's definitely on the way.
Now, NASSCOM throws down the gauntlet with a bold proposal:
• Let "flipped structures" (think Indian startups with HQs abroad) list directly on domestic stock exchanges! Why?
This aligns with the government's recent shift towards more liberal policies.
• But is it a done deal? Not so fast. The government might have mixed feelings about capital flight.
My two cents:
• Don't expect a sudden stampede.
The government is more interested in attracting foreign capital, not sending Indian money overseas.
• Those flipped structures? They might find the path to domestic listing a bit bumpy.
• Setting up your HQ abroad?
Fine, but don't expect easy access to Indian public money.
• However, the government won't completely block your global ambitions.
Just be prepared to play by their rules. Bottom line: • The regulatory landscape is changing, but expect cautious steps, not a full-blown revolution. • For flipped structures, the road to domestic listing might be long and winding.
Stay tuned for further updates!
Check out NASSCOM's proposal here: epaper.indiatimes.com/article-share?article=31_01_2024_020_001_etdc_ET: epaper.indiatimes.com/article-share?article=31_01_2024_020_001_etdc_ET
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