New Delhi: Ahead of the budget, the government is seeing the provision of the release of capital gain for the shares of Indian companies registered directly on the foreign stock market.
This step is similar to the norms that apply to receipt of storage (ADR and GDR).
While the Modil Narendra government encouraged amendments to the company to act to enable live on foreign exchange last year, it did not follow up with the amendments needed for income tax laws.
This results in several companies that choose other ways to register abroad.
Demand for amendments to the tax law has not lost and government sources indicate that the proposal returns to the list before the Ministry of Finance for the actions in the budget.
Some representatives of the corporate sector also make tones for the amendments needed before mod to.
On Sunday, Anurag Jain, secretary in the industrial promotion and internal trade department, told reporters that the government was examining the proposal.
Although the inside of the government believes that the Indian market and the startup ecosystem have evolved for domestic entities to register domestically, there are also suggestions that provide the options needed for the corporate sector.
Otherwise, several startups, such as Flipkart, have moved to other jurisdictions such as Singapore and see a list in the US.
However, the source said, there will only be a handful of companies that will use the option to make a list of exchanges in the US, UK, Singapore or through international financial centers in the gift city.
“Compliance costs for listings in NYSE or Nasdaq are quite high and best you will have four or six companies that will use options in the near future,” said the source.
Provides the necessary framework, which will be attended by detailed regulations from the Corporate Affairs Ministry, will allow registration of around August 15, the 75th anniversary of Indian independence, said market participants.
In any case, last year, renewable energy player updated the power for the company’s special objective acquisition route (SPAC) to register at the Nasdaq after waiting for clarity about the exception of the tax to register directly.
In the absence of a set of rules needed, more companies can explore this option.
COS Direct listings abroad may get Capital Gain tax soup
