Indian Government Opens Doors for Direct Listing of Public Companies on Global Exchanges at GIFT-IFSC

Amaravati Today: The Indian government has introduced a significant policy change that allows public Indian companies to directly list their securities on international exchanges within the Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC). This initiative, in line with the announcement made by Union Finance Minister Smt. Nirmala Sitharaman in July 2023, aims to boost foreign investment inflows, provide growth opportunities, and diversify the investor base for Indian firms.

The Department of Economic Affairs (DEA), Ministry of Finance, has amended Foreign Exchange Management (Non-debt Instruments) Rules, 2019, to establish the 'Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme.' Simultaneously, the Ministry of Corporate Affairs (MCA) has issued the 'Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.'

This regulatory framework permits unlisted public Indian companies to list their shares on international exchanges supervised by the International Financial Services Centres Authority (IFSCA), namely, India International Exchange and NSE International Exchange at GIFT-IFSC. SEBI is in the process of issuing operational guidelines for listed public Indian companies.

This policy initiative is expected to reshape the Indian capital market landscape, offering Indian companies, particularly startups and tech firms, an alternative path to access global capital markets. It is likely to enhance the valuation of Indian companies, attract foreign investments, unlock growth potential, and expand the investor base. Indian companies will have the flexibility to raise capital in both domestic and international markets, benefiting those seeking to expand globally. Furthermore, this initiative is anticipated to provide new investment opportunities, diversify financial products, and enhance liquidity within the GIFT-IFSC capital market ecosystem.

GIFT-IFSC serves as India's first international financial services center, facilitating global connectivity and the seamless flow of global capital into the Indian economy. The International Financial Services Centres Authority (IFSCA) regulates GIFT-IFSC, providing a robust regulatory environment to support global sustainable capital flows.