Finance Minister P Chidambaram has approved the proposal that will help Indian firms raise capital abroad.
At present, unlisted companies that are 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 with the approval of the Union Finance Minister that unlisted companies may be allowed to raise capital abroad without the requirement of prior or subsequent listing in India," the finance ministry said in a statement.
The new scheme will be implemented on a pilot basis for a period of two years from the date of notification of the scheme. After the initial two year period, the impact of this arrangement will be reviewed, it said.
Ministry of Finance, Department of Industrial Policy and Promotion (DIPP) and Reserve Bank of India (RBI) will issue necessary notifications in due course in order to implement the required changes to the existing rules, the statement added.
--IANS (Posted on 27-09-2013)