Over 50 startups are preparing for foreign listing as they aspire to list abroad, experts informed CNBC-TV18. As of now, only Indian listed companies can list overseas. The Cabinet nod in March allowed direct overseas listing of Indian companies. However, startups are still waiting to go abroad.

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In a conversation with CNBC-TV18, Alok Bansal of Policybazaar said that the US has a large pool of investors who understand the Indian business model.

"We would be keen to understand what it means to be listed in the US. The dual listing does not make sense for a lot of companies including the need to have decent float and coverage to enjoy the meaningful benefits of dual listing," he added.

On dual listing challenges, Sumit Jalan of Credit Suisse said there are technical errors.

"The cost of compliance is high but the framework is in place for offshore listing. So, the debate eventually will be between the cost of compliance and commercial upside," he illustrated.

Gupta of KPMG India, meanwhile added that income tax amendments are crucial for offshore listing.

"Entities cleared for offshore listing loses control of who purchases stock abroad," he said.

First Published:Oct 2, 2020 7:44 PM IST