What is direct listing in simple terms?

Direct listing is when a company lists its existing shares on a stock exchange without issuing new shares or raising fresh capital.

How is direct listing different from an IPO?

Unlike an IPO, a direct listing doesn’t involve issuing new shares or hiring underwriters—only existing shares are traded.

What are the main advantages of direct listing for Indian companies?

It offers global investor access, cost savings, no dilution of ownership, and improved brand visibility abroad.

Which exchanges are currently allowed for direct listing by Indian companies?

The India International Exchange and NSE International Exchange at IFSC, Gujarat are currently permitted .

What challenges do companies face with direct listing?

They include complex foreign compliance norms, currency risks, valuation mismatches, and legal or tax complications.

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Direct Listing on Foreign Exchanges

6 mins read

by Angel One

Direct listing lets Indian public companies list equity shares on foreign exchanges without new capital issues, offering global access, cost-efficiency, and greater investor participation.

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