- Unlisted Indian Companies allowed to list and raise capital abroad At present, unlisted companies incorporated in India are not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets. It has now been decided that unlisted companies be allowed to raise capital abroad without the requirement of prior or subsequent listing in India. The scheme will be implemented on a pilot basis for a period of two years from 11th October 2013.The approval to list abroad is subject to certain conditions as prescribed in the notification, like the listing company to be fully compliant with FDI policy, comply with SEBI disclosure requirements etc. The Funds raised overseas to be remitted back to India within 15 days and such money shall be parked only in AD (Authorised Dealer) category banks recognized by RBI to be used domestically, if the same are not utilized abroad, as stipulated in the notification.
- SEBI permit pre-emptive rights and put-call options in Shareholders Agreements Recently, the SEBI has issued a notification wherein it has relaxed certain provisions under Securities Contracts (Regulation) Act, 1956 (‘SCRA’) to boost the interest of investors by allowing them to include preferential clauses like right of first refusal, tag-along, drag-along and call-put option in the share purchase agreements/ Articles of Association subject to certain conditions.
- RBI Notification permitting options
