The Hindu Business Line : Norms eased for unlisted cos raising money from overseas markets

The Government has eased the domestic listing rule for unlisted companies that raised money from overseas markets through foreign currency convertible bonds (FCCBs), American depository receipts/global depository receipts (GDRs) issued in terms of guidelines of May 1998 and are not making profit.

Such entities have now been permitted to comply with the listing condition on the domestic stock exchanges within three years of having started making profits.

An official release, however, said that no fresh issues of FCCBs, ADR/GDRs by such companies would be permitted without listing first in the domestic exchanges.

In order to bring the ADR/GDR guidelines in alignment with SEBI's guidelines on domestic capital issues, the Government had, in August 2005, amended the guidelines.

It was stipulated in August 2005 that unlisted companies, which had issued GDRs/FCCBs in the international market, would be required to list in the domestic market on making profit beginning financial year 2005-06 or within three years of such issue of GDRs/FCCBs, whichever is earlier.

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