MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Todays Market
- Indian Stock Market News October 4, 2013
Will listing abroad first help? Fri, 4 Oct Pre-Open
In an attempt to attract foreign capital and to arrest a sliding rupee and contain current account deficit (CAD), the government has allowed domestic companies to raise capital by getting listed and selling shares through foreign stock markets without being first listed on local exchanges or prior government permission.
The scheme has several conditions attached to it. Some of the important conditions include:
- The government has, however, specified that unlisted companies may be allowed to list only in those countries which are IOSCO (The International Organization of Securities Commissions) or FATF (Financial Action Task Force) compliant. Such compliance ensures that the said country is not involved in any terror funding activities.
- The capital raised by companies abroad could be directed towards paying off existing foreign debt, or for operations abroad, including acquisitions. This scheme will be implemented on a pilot basis for a period of two years. After the initial two year period, the impact of this arrangement will be reviewed.
Quite a few companies may find it an exciting initiative. For example - If Cleartrip or Flipkart did not want to do an IPO in India, but wanted to raise money through an IPO abroad, they can now easily do it. In addition to this, once they have raised money abroad, there is no mandatory requirement for them to list in India, which was not the case prior.
Many unlisted mid-sized firms that would be candidates to list abroad would find it hard to meet regulatory requirements and cost structures for overseas markets. But some companies, especially in the export-driven information technology sector, are expected to explore listing opportunities in the United States or London in coming months. Some private equity investors, who have been unable to exit their investments partly due to poor domestic market sentiment, may also explore overseas listing of their portfolio companies.
Despite the conditions mentioned above, it is still a great move by the government to come up with this pilot scheme. This surely will be quite attractive for companies who are looking to expand their horizons abroad.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Indian Share Market Update: Top Gainers and Losers
What else is happening in the markets today? Dig in...
- TRACK NOW:
- Most Active Stocks Rs 0 to 10
- Most Active Stocks Rs 10 to 20
- Top Gainers Today BSE A Group
- Top Gainers Today NSE Above Rs 20
- Top Gainers Today BSE Above Rs 20
- Top Gainers Today BSE Sensex
- Top Gainers Today BSE Small Cap
- Top Gainers Today BSE 500
- Top Losers Today BSE A Group
- Most Active Stocks Rs 1 to 2
- Top Losers Today NSE Above Rs 20
- Buzzing Stocks Today
- Most Popular Stocks BSE 30
- TRENDING ON EQUITYMASTER:
- Warren Buffett - The Value Investor
- Your Ultimate Guide to Penny Stock Investing
- How to Invest in Gold
- Basics of Value Investing
- Benjamin Graham
- The Best Bluechip Stocks to Buy
- How to Invest in Silver
- The Best Small-cap Stocks to Buy
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Best Stocks to Buy Today
- How to Use P/E for Successful Investing
- How to Find Undervalued Stocks
- Differences Between Trading and Investing
- SWOT Analysis for Stocks
- The Best Dividend Stocks to Buy
Views on News
ITI Mid-Cap Fund: Investing in Potential Midcap Companies for Growth (Outside View)
Feb 26, 2021PersonalFN analyses the features of ITI Mid-Cap Fund and explains the potential this fund has to offer to its investors.
NSE Glitch: Why Did the Market Go Up? (Fast Profits Daily)
Feb 26, 2021In today's video, I'll discuss why thew stock market went up on Wednesday, 24 February 2021, when the NSE had to shut trading due to a technical glitch.
My Personal Checklist for Your Trading Success (Profit Hunter)
Feb 26, 2021You my personal trading checklist and you will be well on your way to making it big as a trader.
Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)
Feb 25, 2021In this video, I'll show you how to get started on the path to daily trading profits.
Refresh Your Investment Portfolio in 2021 to Align with Your Financial Goals (Outside View)
Feb 25, 2021Timely review of your investment portfolio is the key, to enable stable returns and work towards your envisioned financial goals during various market phases.
More Views on NewsMost Popular
It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)
Feb 24, 2021Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.
Intraday Trading for a Living (Fast Profits Daily)
Feb 15, 2021In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.
Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)
Feb 16, 2021A look at what India's top equity mutual funds bought and sold in January 2021.
I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)
Feb 16, 2021Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.
MoreOUR TOP 5 IDEAS
- Access Now: Eight Steps to Your Eight Figure Fortune
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
S&P BSE SENSEX
Feb 26, 2021 (Close)
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Will listing abroad first help?". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!