The ministry of corporate affairs is trying to get more private companies listed. In this regard it is planning to seek inputs from market regulator, Securities and Exchange Board of India and other key economic ministries to explore the modalities of a legal framework.
Corporate affairs minister Salman Khursheed told FE, ?We want that more and more private companies should enter the capital markets so that they get greater credibility in the market. Listing of a company also sends greater confidence amongst the investors.?
Khurshid said as far as listing of private companies is concerned, it is a long process as it involves talking with the market regulator and other ministries before any final call is taken.
Khurshid said MCA will also plans to conduct advocacy programmes with private firms to pursue them to list.
?In case of listing of private firms, it is important to decide the listing eligibility of a company as all private firms would not have enough capital to enter the capital market. So, the government will take a call on what should be the tab in terms of the net value of a company that makes it eligible to list,? said an MCA official.