Company sources said that a series of meetings is scheduled to be held this week to finalise the details. If VSNL succeeds in its plan, it would be the first instance of an Indian company listing its shares on the Nasdaq without making an offer in the US markets.

Sources said that there is an exemption which is granted by US stock exchanges to listing of securities issued in other markets. Extremely stiff conditions are prescribed by the exchanges before the shares are listed.

"Subject to adhering these conditions, a listing at Nasdaq is very much on the cards. We would need to meet some accounting and disclosure norms which we would do so. Preparing our accounts under US GAAP is one such step we would need to take. Talks are being held this week with several persons and agencies associated with the entire process and we would have a clearerpicture on the precise schedule by the end of the week," said a VSNL source.

"We are the international telecom carrier and are expected to remain so till 2004. We already have a large number of investors in the US who are forced to trade in the GDRs at the London Stock Exchange. If we can list the GDRs at Nasdaq we would provide a market to our investors there," said the source.

It is learnt that following the recent success of Infosys issue, in terms of the good response it has received from investors trading at Nasdaq, VSNL feels that its stock too would be able to attract a good demand.

It could also at a much later point of time be used as a platform for the issue of ADRs. But this is not expected to happen for quite sometime considering that VSNL has already made two GDR issues and the Government holding is already down to about 55 per cent which leaves little room for any further disinvestment.

The VSNL GDR is at present trading at the $10 level, which according to VSNL actingchairman-cum-managing director Amitabh Kumar is lower than expectations, though higher than the price at which the GDRs were issued. VSNL had earlier this year come out with its second GDR issue which was a disinvestment of Government holding.

VSNL is trying to reach out to its international investors and is also working on a change in its image to send across signals that it is truly a international telecom firm. Last week, VSNL had revamped its website to as a step towards achieving its objective.