The government has allowed unlisted Indian companies, which have earlier done an ADR or GDR issue, to undertake sponsored issues without getting listed for some time.
The government had earlier banned companies not listed in India from listing overseas, and directed those listed on foreign markets to list in India.
Finance ministry officials said the norms had been relaxed following representations by industry associations.
"The relaxation is restricted to unlisted entities that have issued ADRs or GDRs,'' an official said.
Unlisted companies that have not issued FCCBs, ADRs/GDRs prior to August 31, 2005, would require prior or simultaneous listing on the domestic stock exchanges for issuing FCCBs, ADRs/GDRs, or sponsoring such issues against existing shares under the scheme.
An official release said unlisted companies that had issued FCCBs, ADRs or GDRs before August 31, 2005, and were not making profits would be permitted to sponsor issues against existing shares held by its shareholders.
Such companies would be permitted to comply with listing conditions on domestic stock exchanges within three years of their starting to make profits.
The permission to companies not listed in India to float sponsored issues overseas is seen by analysts as provision of an exit route to venture capital and private equity investors in such companies.
