30 October 2023 | Corporate

The Ministry of Corporate Affairs (MCA) in India has driven significant reforms in the corporate landscape. Recent changes to the Companies Act of 2013 allow certain Indian public companies to directly list specific securities on foreign stock exchanges, such as Gift City in Gujarat. These changes stem from 2020 amendments to the Companies Act, permitting select companies to issue securities on foreign exchanges without complying with Indian company law norms.

Concurrently, MCA has mandated private companies to convert their securities into dematerialized form, except for smaller and government-owned entities. Private companies must comply by the end of September 2024, marking a transformative shift in India’s corporate governance.

These reforms aim to enhance transparency, efficiency, and financial market integrity. Dematerialization aligns India with global practices, reducing risks associated with physical share certificates and improving investor protection. Direct listing on foreign stock exchanges opens avenues for Indian companies to access global capital markets, streamlining capital raising and potentially boosting valuations.