Global listing, local gains

Allowing Indian firms direct listing abroad makes sense

Corporate India and stock-market investors should welcome the news that the Securities and Exchange Board of India (Sebi) has constituted an expert committee to consider ways and means for India-incorporated companies to list on foreign bourses. There are significant gains to be garnered for both sets of players in such overseas listings norms. For corporations with investment plans, raising finance locally has become a headache in recent years. Access to bank finance has become difficult as a result of Indian banks’ huge bad debt overhang even as rising global interest rates and domestic inflation are raising the cost of capital.