In a groundbreaking move, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, announced on July 28, 2023, the direct listing of Indian companies on GIFT-IFSC exchanges. The Department of Economic Affairs (DEA), Ministry of Finance, has amended rules, facilitating the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme.’
The Ministry of Corporate Affairs (MCA) concurrently issued Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024, establishing a comprehensive regulatory framework. Unlisted public Indian companies can now list shares on international exchanges, with SEBI working on operational guidelines for listed counterparts.
Permitted stock exchanges at GIFT-IFSC, including India International Exchange and NSE International Exchange, are currently under IFSCA regulatory supervision. The Companies (Amendment) Act, 2020, previously laid the groundwork, allowing direct listing of prescribed securities for public companies incorporated in India on approved foreign exchanges.
This strategic initiative is poised to reshape the Indian capital market, offering startups and tech companies an alternative avenue to global capital. The move is anticipated to enhance valuation, attract foreign investments, unlock growth opportunities, and diversify the investor base. Public Indian companies can now access both domestic and international markets for capital, catering to global investors in foreign currency.
The policy is especially beneficial for Indian companies eyeing global expansion, providing a boost to GIFT-IFSC’s capital market ecosystem. It offers new investment opportunities, diversifies financial products, and enhances liquidity, aligning with GIFT-IFSC’s mission as India’s primary international financial services center.
This transformative step, effective since October 30, 2023, is a testament to India’s commitment to facilitating global financial integration, fostering sustainable capital flows, and positioning GIFT-IFSC as a pivotal hub for international financial services.