Indian companies can now list directly on GIFT City’s international exchanges
NEW DELHI : The finance ministry on Wednesday notified direct listing of Indian companies on GIFT City’s exchanges, a move expected to enable startups and unlisted companies access global capital. Indian companies can now list on the financial hub’s India International Exchange and NSE International Exchange at Gandhinagar, the ministry said.
“This policy initiative, to enable listing of Indian companies in GIFT-IFSC, will reshape the Indian capital market landscape and offers Indian companies, especially startups and companies in the sunrise and technology sectors, an alternative avenue to access global capital beyond the domestic exchanges," the finance ministry said in a statement. The markets regulator will issue operational guidelines, it added.
The government recently amended the Companies Amendment Act 2020 to allow a specified class of securities, issued by certain public companies, to be listed on stock exchanges in permitted foreign jurisdictions. Such listings are for now limited to the International Financial Services Centre at the Gujarat International Financial Tech-City.
The ministry of corporate affairs has issued rules for governing the listing of equity shares in permissible jurisdictions, where it has specified that Nidhi companies, companies having negative net worth, and those having outstanding deposits from the public, will not be eligible for listing. These rules together will provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international exchanges, the finance ministry said.
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