SEBI should operationalise framework for easing restrictions on raising money abroad | The Indian Express

SEBI should operationalise framework for easing restrictions on raising money abroad | The Indian Express

Written by Pratik Datta |Updated: September 13, 2019 12:18:13 pm

The writer is a Senior Research Fellow at Shardul Amarchand Mangaldas & Co

SEBI should operationalise framework for easing restrictions on raising money abroad

India’s tryst with DRs began with the first scheme in 1993. Liberalisation gave a major boost to export-oriented services sector companies. Given their high growth potential, they could easily raise equity capital.

From 2013 to 2018, only one Indian company raised 5 million on the New York Stock Exchange.

Former Finance Minister Arun Jaitley had ushered in a critical, yet often overlooked, reform — the Depository Receipts Scheme, 2014. On paper, this scheme generously liberalised the overseas listing regime for Indian corporates. But, it was never fully operationalised. This was a major setback for Indian corporates. From 2013 to 2018, only one Indian company raised $185 million on the New York Stock Exchange.