India wants US cos. To list on its bourses: Report 29/09/2014

India wants US cos. To list on its bourses: Report
29/09/2014 00:09
According to media reports, India has called on American and other foreign companies to list on the country’s bourses, which may boost liquidity and efficiency of domestic stock markets apart from aiding in the development of the financial sector of Asia’s third biggest economy. The newly proposed Bharat Depository Receipts regime is similar to the existing American Depository Receipt (ADR) regime which makes it possible for Indian companies to list on US bourses, MS Sahoo, the Chairman of the government committee on Depository Receipts said, the PTI reported. Bharat Depository Receipts is a rupee denominated instrument that would be issued by an Indian depository against the listed equity of a foreign company. Sahoo added that policymakers will make sure that the new regime for allowing foreign companies to list on Indian stock exchanges via the issue of a rupee denominated instrument is not misused and that investor interest is protected at all times. Sahoo also underlined the need for a friendly tax structure for the new regime. “A complete suite of BhDRs should be allowed to be issued and traded in India to make the Indian financial system more competitive, and to provide greater choice to Indian investors. “Both Indian - retail and institutional - as well as foreign investors should be allowed to invest in BhDRs”, Sahoo-headed panel on Bharat Depository Receipts said in a report.