Direct overseas listing
Also called: Direct listing · Topic: Financial Markets, Instruments, Insurance and Pensions · NCERT: Beyond NCERT
Meaning
Direct overseas listing means an Indian company lists its own shares directly on a foreign stock exchange, without using depository receipts. This gives Indian firms, especially start-ups, direct access to global investors and capital. India enabled it in 2024. At first it covered only the international exchanges in GIFT City IFSC (International Financial Services Centre), Gujarat.
Example
An Indian fintech company could list its shares on an international exchange in GIFT City IFSC, such as NSE IX or India INX. Foreign investors can then buy those shares directly.
Don't confuse with
- Depository receipts (ADR/GDR): in this route, a foreign depository bank issues certificates that represent the company's shares, and the certificates are traded abroad. In a direct listing, the actual shares are traded.
Related concepts
- Primary market
- Initial Public Offering
- Red herring prospectus
- Book building
- Anchor investor
- Qualified Institutional Buyer
- Application Supported by Blocked Amount
- Green shoe option
- Underwriting
- Grey market premium