The Ministry of Corporate Affairs has clarified that Indian tech companies that choose to list on overseas stock exchanges would not be considered as listed companies in India. 

Until now, companies that raised funds from public investors on overseas exchanges were considered as listed companies in India as well, and subject to stringent rules and regulations mandated by the Securities and Exchange Board of India (SEBI). These include disclosures on a quarterly basis to the regulator on the financial performance as well as corporate governance. 

From now, companies listed abroad wouldn’t be considered as public companies in India and hence, would not need to comply with the norms for listed companies. Several Indian startups eyeing an overseas listing this year had expressed concerns about being regulated by multiple agencies, even though overseas listing had been opened up for such companies. 

With the change in rules, an Indian company that lists overseas would only need to comply with the regulations for public companies within that particular jurisdiction.