Sebi proposes direct listing of Indian cos on foreign bourses

NEW DELHI: Markets regulator Sebi on Tuesday proposed to allow direct listing of Indian companies on overseas bourses and of foreign firms on Indian exchanges, while setting up an expert panel to look into the details. Currently, Indian companies can list their shares through depository receipts abroad, while foreign companies need to go through the Indian Depository Receipt route for listing of equities. However, Indian firms can list their debt securities directly on international exchanges as what is known as 'Masala Bonds'.

"Considering the evolution and internationalisation of the capital markets, it would be worthwhile to consider facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa," the Sebi said in a release.

"In this regard, it has been decided to constitute an expert committee to look into this aspect in detail," it added. The committee will examine in detail the economic case for permitting direct listing of Indian companies overseas and vice versa. Besides, it would examine various legal, operational and regulatory constraints in facilitating companies incorporated in India to directly list their equity share capital abroad and vice versa, Sebi said.

The panel will also make recommendations for a suitable framework in which to facilitate such direct listing. The expert committee would have nine members including Avendus Capital Managing Director Ranu Vohra, Amarchand Mangaldas Managing Partner Cyril S Shroff, Kotak Investment Banking Managing Director and CEO S Ramesh, Makemytrip.com Chairman & Group CEO Deep Kalra and Zodius Capital Advisors Senior Managing Director & CEO Neeraj Bhargava.

Morgan Stanley MD (Technology, Media and Telecom Banking) Kamal Yadav, Latham & Watkins LLP Partner Rajiv Gupta and KPMG and LLP Global Head of Accounting Advisory Services Jamil Khatri are also part of the panel. Sebi ED Surjit Prasad would be the convenor of the committee. NEW DELHI: Industrial production expanded by 4.9 per cent in April on improved performance by manufacturing and mining sectors as also a robust offtake of capital goods.

The industrial growth, based on Index of Industrial Production (IIP), was 3.2 per cent in April last year.

The IIP for March this year has been revised upwards to 4.6 per cent from 4.4 per cent estimated earlier.

As per the data released by the Central Statistics Office (CSO), the manufacturing sector which accounts for over 77 per cent weight of the index, recorded a growth of 5.2 per cent in April this year, up from 2.9 per cent a year ago.

Similarly, the mining output grew by 5.1 per cent, compared to 3 per cent in the year ago period. As per the 'use based' classification, capital goods out, a barometer of investment, expanded by 13 per cent in April this year as against a decline of 4.8 per cent in the year-ago month. Consumer durable as well as consumer non-durable segments too posted higher growth on yearly basis.

"While the rise in consumer non-durable points the revival in rural sector, the increase in consumer durable posted a positive outlook for the urban centres," said D S Rawat, secretary general of industry body Assocham.

According to him, the rise in output of the capital goods sector is indicative of improvement in investment demand.

In terms of industries, 16 out of 23 groups in the manufacturing sector have shown positive growth in April this year on yearly basis.