Cabinet approves proposal to allow direct listing of overseas Indian companies

The Cabinet recently approved a proposal to allow direct listing of Indian companies overseas. Appropriate amendment would be made in the Companies Act, 2013 for the same.

Very few Indian companies have Global Depository Receipts (GDRs) and only some have American Depository Receipts (ADRs) which can be traded in the US. A Depository receipt is a foreign currency denominated instrument, issued by a foreign depository to a domestic institution and it is listed on an international exchange.