The International Financial Services Centres Authority (IFSCA) is expecting notifications from the finance ministry and certain amendments from other regulators to facilitate direct listing of Indian companies on the exchanges operating out of the Gujarat International Financial Tech (Gift) City.
IFSCA chairperson K Rajaraman indicated a timeline of April 2024 for domestic companies to start the listing process at the IFSC.
“We are trying to initiate it in a few months. Some rules to be notified from the finance ministry are expected. Similarly, RBI (Reserve Bank of India) may issue some rules on overseas investment regulations. Sebi too will need to amend norms to allow already listed companies to list there (at IFSC),” he said in Mumbai.
The industry players say that the new avenue will help startups and unlisted companies access global capital.
In October, the government amended the Companies Act to allow a specified class of securities issued by certain public companies to list on the stock exchange of a permitted foreign jurisdiction—in the GIFT City to begin with.
Global investors, legal players and market participants said more clarity on taxation, foreign investor regulations, market making, takeover code regulations and disclosure is awaited on the direct listing norms.
At present, Gift Nifty — the index contracts from the National Stock Exchange (NSE) drives the major volumes in the equity space in the Gift City — the maiden IFSC in the country right now.
On the impending merger of IFSC units of BSE and the National Stock Exchange (NSE), Rajaraman said that they expect the finalisation by January 2024.
First Published: Dec 06 2023 | 6:42 PM IST