investors may get to invest directly in foreign companies
by the end of this year. SEBI chairman indicated yesterday
that guidelines to allow foreign companies to access Indian
capital markets would be issued in the near future.
allowed, overseas companies would be able to make equity
offerings in the Indian market in the form of depository
receipts. These issues would be similar to the ADR / GDR
issues of Indian companies in overseas markets.
has reportedly submitted its recommendations to the department
of company affairs. The revised recommendations have reportedly
diluted some of the tough eligibility requirements for
issuing companies regarding dividend paying track record
and issue size.
from neighbouring countries, especially SAARC countries,
may find it attractive to access the Indian markets. For
them, raising money from the Indian markets would be easier
and cheaper than US or European markets.