Now, easier norms for foreign cos looking to list in India?

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Even as global financial sector firms like Standard Chartered and power utilities from neighboring countries are interested in listing in India via the Indian depository receipts (IDR) route, CNBC-TV18 learns that the government has proposed to ease investment norms for such issues. This will allow foreign instiutional investors (FIIs) and non-residential Indians (NRIs) who are not allowed to participate in the IDR issues and the initial market for the IDR issue will become liquid.

Also Read: Many fin cos interested in IDRs: Govt official

Here is a verbatim transcript of Siddharth Zarabi's comments on CNBC-TV18. Also watch the accompanying video.

This will come as a major boost for the proposed IDR issues. Standard Chartered had proposed a billion dollar India listing. This will allow once FIIs and NRIs who are not allowed to participate in IDR issues and the initial market for the IDR issue will become liquid. There will be greater investor interest and according to top government officials this has already been agreed by market regulator Securities Exchange Board of India (Sebi) and the Ministry of Corporate Affairs, which administers the IDRs, is currently in talks with the RBI. Sources say that this will be part of one of the announcements in the general Budget as and when it happens.

Once the FII amendment clause happens as well as a tax treatment clarification is also expected in the Budget. After July, the entire IDR market will open up for greater interest from overseas investors, companies to list in India via the IDR route.