The department of economic affairs (DEA) in the ministry of finance has amended foreign exchange management (non-debt instruments) rules and notified the direct listing of equity shares of companies incorporated in India on International Exchanges Scheme. Besides, the ministry of corporate affairs (MCA) has also issued companies
(Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.
The GIFT-IFSC is the maiden international financial services centre of India that connects India with global opportunities and also enables the Indian economy to connect with the global financial system and allows seamless and easy flow of global capital into India. On July 28 last year, finance minister Nirmala Sitharaman made an announcement regarding the direct listing of Indian companies at GIFT- IFSC exchanges in the first phase.
As per the finance ministry, a unified statutory regulatory authority, International Financial Services Centres Authority (IFSCA) has taken significant steps in accelerating global sustainable capital flows by providing an agile and world-class regulatory and business environment in GIFT IFSC.
International stock exchanges at GIFT-IFSC — India International Exchange and NSE International Exchange have been, currently, prescribed as permitted stock exchanges. These exchanges are under the regulatory supervision of the IFSCA. “These, together, provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international exchanges,” the finance ministry said in the statement.
It further said that the initiative would boost foreign investment flows, unlock growth opportunities and broaden the investor base for Indian companies. As of now, the framework allows unlisted public Indian companies to list their shares on an international exchange. The Securities and Exchange Board of India (Sebi) is in the process of issuing operational guidelines for listed public Indian companies.
