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Tightening of norms by US bourses may queer the pitch for Indian entities

The Senate passed a legislation earlier this week that requires non-US firms to meet a number of strict criteria to remain listed

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In recent years, US and other international finance centres have lowered the compliance bar to encourage more companies to list

Samie Modak Mumbai
Tightening of the listing framework by US bourses and the proposal to delist non-compliant firms may make the road more tough for Indian entities looking to sell shares in the world’s largest market.

The Senate passed a legislation earlier this week that requires non-US firms to meet a number of strict criteria to remain listed. Further, exchanges including Nasdaq plan to enforce tighter rules for initial public offerings (IPOs). One such rule mandates companies to raise a minimum of $25 million, or sell at least 25 per cent equity.

Experts said the decision to enact a tighter framework was aimed

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First Published: May 22 2020 | 10:01 PM IST

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