(a) whether the Government intends to allow listing of multi-national companies (MNCs) in India;
(b) if so, the details thereof; and
(c) whether the Government intends to allow trade of dollar denominated shares of parent multi-national companies and if so, the details thereof and if not, the reasons therefor?
THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)
AND CORPORATE AFFAIRS (???? ?????? ???? ?????)
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(a) & (b):- Securities and Exchange Board of India (SEBI) under the Department of Economic Affairs (Ministry of Finance) has stated on 13.11.2019 that all the entities incorporated in India desirous of listing their shares on the stock exchange are required to meet the eligibility requirements for an initial public offer as per SEBI (Issue of Capital and Disclosure Requirements (ICDR)) Regulations, 2018. Regulation 6(1) of SEBI (ICDR) Regulations, 2018 provides the eligibility criteria for Indian Issuers for listing shares on the Stock Exchange. Further, foreign companies may also raise funds from the Indian securities Markets by way of Indian Depository Receipts. The eligibility conditions for IPO of Indian Depository Receipts are provided in Regulation 183 of the SEBI (ICDR) Regulations, 2018.
(c):- The trading of dollar denominated shares of parent multi-national companies is not permitted on onshore stock exchanges. However, Clause 7 of SEBI (International Financial Services Centres (IFSC)) Guidelines, 2015 states that the stock exchanges operating in IFSC may permit dealing in securities and products in such securities in any currency other than Indian rupee, with a specified trading lot size on their trading platform subject to prior approval of the Board including Equity shares of a company incorporated outside India, Equity derivatives, Commodity derivatives, Depository Receipts etc.
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