Page 15 - Banking Finance December 2020

ROUNDUP

it to be extended to all the other em- Receipts and American Depository "In the case of other regulations, it is
ployees," he added. Receipts. As part of the Companies likely that they would have to follow
A tier-II account under NPS is not a Amendment Act, 2020 passed in the the stricter of two regulations," said
compulsory account, one can have it monsoon session of Parliament, an the official.
enabling provision was brought by the
along with the tier-I account, he said,
government allowing certain compa-
adding the benefit with tier II account Draft rules under code on
nies to list securities in foreign jurisdic-
is that it can be withdrawn immedi- social security released
tions.
ately. The Ministry of Labour and Employ-
Last month, the Finance Ministry had "The conditions under which compa- ment has released draft rules for the
kicked off the exercise to prepare the nies will be allowed to list directly on Code on Social Security, 2020 for com-
Budget for 2021-22 amid the urgency foreign exchanges will be based on ments from stakeholders. The draft
to revive the economy hit by the meeting certain thresholds including rules are linked to provisions relating
average profit over the past three
COVID-19 pandemic. to Employees' Provident Fund
years, paid-up share capital, securities
Organisation (EPFO), Employees' State
premium and the value of intangible
Russian firm looks to buy Insurance Corporation (ESIC), National
and tangible assets of the company,"
Reliance Naval said a government official aware of Social Security Board for unorganised
workers, gig workers and platform
Most shipbuilding companies are back- developments. workers outlined in the Code on Social
ing away from purchasing Anil The official said a company would likely Security.
Ambani's Reliance Naval and Engineer- be required to meet any three of six
ing Ltd (RNaval), which is being sold to such criteria to be eligible for direct The draft rules provide for Aadhaar-
pay its debts. foreign listing. based registration including self-regis-
tration by unorganised workers, gig
However, Russia's state-owned United The ability for Indian companies to list workers and platform workers on the
Shipbuilding Corporation (USC) remains ordinary shares on foreign exchanges portal of the Central government, the
interested. Responding to a media re- is expected to help them get better Ministry said in a statement.
port last month that said USC had valuations, besides being an alterna-
opted out of the bidding process, the tive source to raise capital. The Cen- For availing any benefit under any of
Russian Embassy in India clarified: "USC tre had received representations seek- the social security schemes framed
has never officially indicated its refusal ing provisions to all companies to di- under the Code, an unorganised
to participate in the tender." rectly list securities on foreign bourses, worker or a gig worker or platform
worker shall be required to be regis-
especially from start-ups. tered on the portal with details as may
Norms allowing Indian The official also said that initially, com- be specified in the scheme, it said.
companies to list on select panies would only be permitted to list The rules also provide for Aadhaar-
foreign bourses to be no- in the US, UK, Japan, South Korea, based registration of building and other
Germany and Canada and that the construction workers (BOCW) on the
tified soon Ministry would progressively add to the specified portal of the Central govern-

Indian companies will soon be able to list of permissible jurisdictions. ment and the state government or the
get listed directly on foreign stock ex- Another government official noted State Welfare Board. When a building
changes as the Ministry of Corporate that certain issues regarding foreign worker migrates from one state to
Affairs is set to notify regulations allow- listing still needed to be ironed out and another, he shall be entitled to get
ing Indian companies to get listed in
that companies being listed abroad benefits in the state where he is cur-
select foreign jurisdictions, according may need to publish two sets of finan- rently working, and it shall be the re-
to government officials. cial statements to deal with any differ- sponsibility of the Building Workers
Currently, Indian companies are able to ences in regulatory requirements be- Welfare Board of that state to provide
list their shares on foreign stock ex- tween India and the jurisdiction in benefits to such a worker, the state-
changes through Global Depository which they are being listed. ment added.

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