InvestorQ : How do you see the impact of the dual listing norms proposed?
vidhya Laxmi made post

How do you see the impact of the dual listing norms proposed?

Answer
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sarah Leo answered.
2 weeks ago


It is proposed that Indian companies that list overseas will have to follow it up with a listing on the domestic bourse too. However, some of the companies have expressed unhappiness. In March, India had allowed local firms to directly list abroad.

As of now specific types of depository receipts like ADRs and GDRs are permitted to be listed in global markets but that is subject to the company having gone public in India. Large companies like HDFC Bank, ICICI Bank, Vedanta, Infosys and Wipro already have ADRs.

This move could be positive for local firms and could also be a boost for Indian unicorn start-ups like Byjy’s, Unacademy etc. It is expected that even Reliance’s digital unit may seek US listing after the fund raising round is completed.

It is estimated that such a follow-up India listing could happen within a period of 6 months to 3 years. It is in this context, that the dual listing idea is being considered wherein the company can be listed in two different geographies at the same time.

However, there are sceptics like Softbank of Japan which warns that such a move could split volumes. Many of the PE investors are worried that if the government insisted on dual listing, then their plans to seek exit routes through global IPOs may have to be put off.

Back in 2018, SEBI had listed 10 possible foreign markets for overseas listings.