The Foreign Direct Investment (FDI) policy of the government has been amended.
According to the Department of Industrial Policy and Promotion, the FDI policy will now allow unlisted firms to directly list on stock exchanges abroad.
The department said this amendment in the consolidated FDI policy will help to raise funds for acquisitions or clearing overseas debts.
It said that it might also help India to contain its high Current Account Deficit (CAD).
The department said the amended FDI policy will be in force for a period of two years on a pilot basis.
Previously, unlisted companies were not allowed to directly list in overseas markets without prior or subsequent listing in the Indian market. (ANI)