CONCLUSION

Funds are required for different business operations and the amount of these funds depends upon the size of firm & nature of task. Globalisaion has reduced the barriers among the national financial markets and hence different options are available to companies to raise the required funds with lowest cost. ADR, GDR & FCCBs are one of the important sources available to Indian companies to raise the required funds. Recently, government announced that the company has to list in Domestic Stock Exchanges before listing on foreign exchanges and those, which are already listed on foreign Exchanges, would have to list on Indian bourses as well. This move may affect the financial requirements of the companies, as they have to list on the local bourses even if they dont need any funds and ultimately there will be loss for both i.e. company and investor. This move was a response to the sharp hike in FCCB option shown by companies and the consequent drying up of Domestic Public Issues. Some companies list on foreign exchanges or raise money from abroad to meet their business requirements, while some companies do so because they need Global recognition. Since risk capital is being issued to foreign investors, it is they who need to watch out for what they are investing in. Indian companies should be free to raise capital from wherever they are able to get it efficiently and Government should try to ease the norms for Domestic Listing and motivate Indian companies to list Locally.