- Introduction[1]:
India’s overall stock market valuation exceeds $5 trillion, positioning it as the fourth largest globally. This accomplishment is remarkable, especially considering India was a largely closed economy just a few decades ago. With the largest number of domestically listed companies worldwide, India presents appealing investment prospects for both foreign individual investors and foreign institutional investors.Financial markets are essential for linking investors with companies that require funding for their initiatives.Companies strive to obtain capital at the most affordable rates, as this allows them to engage in more financially sound ventures and enhances total investment levels. Equity financing from foreign investors is often cheaper than that from domestic sources, since global investors enjoy better diversification and have a wider array of investment options.
The world is increasingly interconnected, and capital markets reflect this trend, as businesses frequently seek funding opportunities beyond their own borders or jurisdictions. Companies have various methods to tap into global capital markets, such as cross-border listings, domestic listings with international placements, and private placements.Cross-border listings allow firms to raise capital on foreign stock exchanges, enabling them to reach a broader investor base and potentially increase their visibility. Firms issue securities to raise funds, provide investors with liquid investment choices, and create wealth. Listing securities on a stock exchange is essential for achieving these goals, as it guarantees liquidity, fair valuation, and transparency in transactions.
Companies have the flexibility to select the most suitable venue for listing their securities, often favoring a domestic exchange. However, considering a foreign exchange for listing—either as an alternative to or alongside a domestic option—can be a strategic move. Many companies globally embrace overseas listings, recognizing their potential to attract more capital, broaden their shareholder base, boost brand visibility, and improve trading liquidity. By exploring these opportunities, companies can enhance their market presence and support their growth objectives.
[1][1] CS Pradeep Ramakrishnan, Arjun Prasad, Akash Boddeda, Global Listings at GIFT IFSC, Global Connect (May 2025), https://www.icsi.edu/media/webmodules/CSJ/May-2025/08.3.pdf