<p>With an aim to boost the Indian start-ups and bring them on a global front, the government is planning to allow direct listing of all Indian companies abroad, reported The Times of India. </p>.<p>This plan will not only help the companies access a larger pool of capital but enable the move towards fuller capital convertibility, the report stated.</p>.<p>"This idea is meant to help Indian start-ups and unicorns access a larger pool of investors to raise capital and at the same time allow exits by existing investors," sources familiar to this matter told ANI.</p>.<p>Currently, the only window available for the Indian companies is the depository receipts route to tap investors globally. But after the government's move, companies that are not listed on the Indian stock markets will also be able to list overseas. </p>.<p>An expert committee set up by Sebi said, “Such listings also enable companies to diversify their capital-raising activities rather than being reliant only on their domestic market. In addition, Indian start-up or emerging-growth companies will be able to access capital from investors overseas."</p>.<p>The government on September 20, 2019, had announced lowering of the base corporate tax rate to 22 per cent from 30 per cent for companies that do not seek exemptions and reduced the rate for some new manufacturing companies to 15 per cent from 25 per cent to boost the exposure of the Indian companies.</p>
<p>With an aim to boost the Indian start-ups and bring them on a global front, the government is planning to allow direct listing of all Indian companies abroad, reported The Times of India. </p>.<p>This plan will not only help the companies access a larger pool of capital but enable the move towards fuller capital convertibility, the report stated.</p>.<p>"This idea is meant to help Indian start-ups and unicorns access a larger pool of investors to raise capital and at the same time allow exits by existing investors," sources familiar to this matter told ANI.</p>.<p>Currently, the only window available for the Indian companies is the depository receipts route to tap investors globally. But after the government's move, companies that are not listed on the Indian stock markets will also be able to list overseas. </p>.<p>An expert committee set up by Sebi said, “Such listings also enable companies to diversify their capital-raising activities rather than being reliant only on their domestic market. In addition, Indian start-up or emerging-growth companies will be able to access capital from investors overseas."</p>.<p>The government on September 20, 2019, had announced lowering of the base corporate tax rate to 22 per cent from 30 per cent for companies that do not seek exemptions and reduced the rate for some new manufacturing companies to 15 per cent from 25 per cent to boost the exposure of the Indian companies.</p>
