Introduction

The Nasdaq is a leading global stock exchange in the U.S. that facilitates and supports technology and growth-related companies in various sectors. As a result, the Nasdaq has an increasing appeal and influence as a destination for foreign investments and capital for businesses worldwide, including India. That said, entrepreneurs, investors and finance professionals in India need to understand Nasdaq's listing requirements (the time has passed when firms like Infosys and Wipro have already taken advantage of the Nasdaq listing). This article will review the financial exchange requirements to list on Nasdaq.

Understanding Nasdaq and Its Invitation for Foreign Impact

The Nasdaq (National Association of Securities Dealers Automated Quotations) is an electronic stock exchange that is second in size to the New York Stock Exchange (NYSE). It had over 3,300 companies as of 2025, with the number of companies that have traded on the Nasdaq constantly changing with new listings and delistings. Nasdaq has attracted names like Apple and Microsoft and traded with several companies of Indian origin, such as Infosys and Wipro.  Overall, this stalwart of a financial exchange from the U.S. attracted several Indian investors to the worldwide investment stage, and countless firms in India are looking for capital outside of India to pursue their growth opportunities. For Indian entrepreneurs, investors and financial professionals, if they list on Nasdaq or buy and sell shares of previously listed companies, they will enhance their liquidity, visibility of their financial balancing act and gain access to an enormous range of funds and followers to attract.

Nasdaq Listing Requirements

Companies must meet strict listing requirements depending on the tier of market they occupy to trade on Nasdaq, which consists of three tiers that provide access to a spectrum of company size and maturity:

Nasdaq Global Select Market: This market is for large, established companies with the highest listing criteria. Companies need a minimum bid price of $4 per share, 1.25 million publicly held shares, a $45 million market value of publicly held shares, and one of four financial standards, such as $11 million in pre-tax earnings over three years or a $550 million market cap with $90 million in cash flow.

Nasdaq Global Market: For mid-cap companies, it requires a $4 bid price, 1.1 million publicly held shares, $8 million market value, and one of four standards (e.g., $18 million income or $75 million market cap with $20 million cash flow).

Nasdaq Capital Market: This market is for smaller or emerging firms and has a $4 bid price (or $1 for alternative standards), 1 million publicly held shares, a $5 million market value, and one of three standards (e.g., $750,000 net income or $50 million market cap).

Aside from financial thresholds, companies must also satisfy qualitative Nasdaq criteria, including independent board members, audit committees, and compliance with the U.S. Securities and Exchange Commission (SEC) regulations. For Indian companies, these governance expectations align nicely with global best practices but will require changes to adapt to U.S. standards.

Relevance for Indian Companies

For Indian companies, the Nasdaq listing, typically through American Depositary Receipts (ADRs), is usually a first-rate economic and strategic move to tap into U.S. capital markets. Companies listed on the Nasdaq, such as Infosys and Wipro, have been able to use ADRs to get global visibility. The listing requirements for Nasdaq are high only to allow companies to list that are financially healthy and well governed, providing Indian investors with a certain level of assurance when trading stocks on Nasdaq via the International Financial Services Centres (IFSC) in India or brokers operating in the global markets. Increasingly, Indian start-ups and technologies, be it the tech, biotech or otherwise, in the startup ecosystem of companies based in Bengaluru, are looking at the Nasdaq as a goal to raise capital for their ventures. At least part of that is because there seems to be a collective agreement that the Nasdaq has an affinity for supporting growth-oriented businesses.

Nasdaq requirements for delisting

A Nasdaq listing requires adherence to ongoing Nasdaq requirements for delisting. For instance, companies must maintain a minimum bid price of $1 and $2.5 million (or greater, depending upon the tier) in shareholders' equity (Capital Market), amongst other requirements at each tier. If a company does not comply with the above requirements, there is a grace period (usually about 180 days) to restore compliance. Failure to return to compliance leads to delisting or transfer to a lower tier. If you are an Indian investor, the risk of delisting should be considered when considering your overall portfolio value in Nasdaq-listed companies, particularly for investors with ADRs. For Indian firms, there is potential risk as well as their name, reputation and financial losses should they not adhere to the above standards.

Why Nasdaq Matters to India

With the number of companies listed on the Nasdaq exceeding 3,300, you have various opportunities to invest, whether you want to invest in a technology giant or an emerging startup. Indian financial institutions allow you to trade on the Nasdaq through global trading accounts, giving retail investors in India access to the growth of the U.S. market. For Indian companies, compliance with the Nasdaq's listing requirements shows credibility and encourages global investors and collaborative relationships.

Conclusion

With the globalisation of India's economy, the interest in the Nasdaq is becoming more prominent. Listing requirements promote stability and transparency, which aligns with the Reserve Bank of India's desire for strong financial practices. Indian investors and firms must understand Nasdaq's requirements and delisting risks as they engage with this fast-moving market. Whether investing directly or through ADRs, Nasdaq is a channel to the global financial sector that will empower the Indian financial community.