The government has granted permission for public companies to directly list their securities on international exchanges within the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC).
The decision follows an announcement made by Union Finance Minister Nirmala Sitharaman in July 2023, aiming to streamline the process of listing companies at GIFT IFSC exchanges.
The Department of Economic Affairs, Ministry of Finance, amended the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and introduced the Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme.
Concurrently, the Ministry of Corporate Affairs issued the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.
According to the government, the move will have a far-reaching impact on the Indian capital market landscape, providing companies, particularly startups and technology firms, with an alternative route to access global capital markets.
By listing on international exchanges, these companies can enhance their valuation, attract foreign investment, and expand their investor base. It offers flexibility for companies to raise capital in both domestic and international markets, fostering growth and expansion opportunities.
