Why is Indian government putting off plans to allow Indian companies to list abroad first, before listing in India?

In a development that may come as a disappointment for global investment bankers, global PE Funds, global stock exchanges and domestic digital plays, India decided to freeze plans to permit local companies to list overseas. The discussion is back to stopping the export of capital and not surprisingly it is once again the Swadeshi Jagran Manch, led by Gurumurthy, that has been lobbying with the government against such a move.

The focus for the time being will be to bolster domestic capital markets. Some of the recent listings has given confidence to the Indian government that Indian markets are deep enough to accommodate such mega IPOs. India was supposed to ease overseas listings in Feb-22, including via SPACS. However, the Russian crisis, the arbitrary nature of American sanctions have also played a part in India becoming sceptical about permitting foreign listings.