RSS organization Swadeshi Jagran Manch opposes direct foreign listing of unicorn companies

The Swadeshi Jagran Manch, the social and economic wing of the RSS, said that the government needs to rein in the overseas listing of Indian unicorns.

Flipping is causing damage.

Indian Unicorn (Indian Unicorns) to be listed in the foreign market without being listed in the domestic market Swadeshi Jagran Manch (SJM) has said that this treatment is worse than the disease, as it will cause Indian authorities to lose not only the right of surveillance, but also the right to tax benefits from businesses that grow in the country. Startup companies with a valuation of more than one billion dollars are called unicorns. Rashtriya Swayamsevak Sangh (RSS) affiliate SJM’s national co-convenor Ashwini Mahajan said the highly successful IPOs of companies ranging from Zomato to Paytm and Nykaa have shattered the argument that the Indian capital market lacks depth. He said, “Swadeshi Jagran Manch is deeply concerned that a large number of unicorns produced in the last decade have either gone abroad or started operating from abroad.”

‘Flipping’ is used for foreign goers, which means that the Indian company constitutes an entity abroad. After that, the entity operating in India is made its subsidiary by making it a holding company. Mahajan said the choice of Indian companies for flipping are Singapore, the US and the UK. These unicorns usually go out at the behest of foreign investors to escape the Indian regulatory regime.

There is no lack of liquidity in the Indian market

He said that these unicorns are also listing their shares overseas because they believe valuations are high there. Mahajan said, “The real question is whether the logic of lack of maturity or paucity of funds in the Indian capital market is correct? The lack of cash is being said to be a hindrance in the way of financing the startup, but this argument seems to be wrong.

Many IPOs have received manifold subscriptions

Recently the IPO of an Indian unicorn Zomato got subscribed manifold. More than 33 percent anchor investors in Zomato were domestic investors. Even global capital can come into IPO through FPI route without getting listed abroad.

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