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The ministry will propose amendments to the Foreign Exchange Management Act (FEMA), the Income Tax Act and the Company Act, officials said on condition of anonymity. These include changes to the taxation of share transfers in India and the addition of licensing provisions under the 2013 Companies Act to allow certain securities classes to be listed on stock markets in authorized foreign jurisdictions. The proposal was approved by the EU cabinet in March. The idea of listing abroad was first launched by a committee of the Securities and Exchange Board of India (Sebi). In its December 2018 recommendations, the panel stated that listing Indian companies abroad would require, among other things, a simultaneous relaxation of tax rules and FEMA. MUMBAI: The Ministry of Corporate Affairs is about to release a draft report that will pave the way for Indian companies to list their shares in overseas markets without being listed in India, two regulators said, aware of the case. SEBI has spoken publicly on the proposed standards until May 30. „In order to ensure a uniform advertising obligation, the provisions of various clauses of the equity listing agreement have also been applied to SMEs,“ said MR SEBI. In addition, the proposed rules may also apply to non-convertible bonds and non-convertible predefined shares.

Meanwhile, SEBI has stated standards regarding the allocation, refund and payment of interest, the closing date of the book, the 1 percent filing application, the submission of several copies of documents to the Stock Exchange, among others, cannot be included in the new list standards, as they are either redundant or would be included in separate regulations. The final standards, which would be established after the introduction of public notices, would replace the existing listing agreement provisions, which currently serve as a contract between a stock exchange and the company wishing to be listed on its platform. Currently, a company based in India can only be listed on a foreign exchange after being listed in India. MakeMyTrip, which is listed on the Nasdaq, had to integrate into Mauritius to facilitate listing abroad without going public in India. „In the event of non-compliance with the provisions of these regulations, the Exchange takes appropriate action against the listed company, including the imposition of fines, suspension, freezing of the participation of project proponents, etc. as defined by the Commission in this circular or the guidelines that are published from time to time in this context,“ the draft standards states. „Corporate governance aims to maintain a balance between economic and social objectives as well as individual and local objectives. The governance framework is intended to promote the efficient use of resources and to require responsibility for the management of these resources. The aim is to coordinate the best interests of individuals, businesses and society. -Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992 The fundamental criterion on which the entire list of agreements is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept.

In addition, there is a clause dealing specifically with corporate governance, namely: Clause 49. Listing involves the admission of securities to trading on a recognized exchange. Securities can be limited companies, central or state governments, quasi-state institutions and other financial institutions/capital companies, municipalities, etc.

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