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The government on Wednesday allowed direct listing of securities by Indian companies on international exchanges of GIFT IFSC to boost foreign investments.

The finance ministry has amended the Foreign Exchange Management (Non-debt Instruments) Rules and notified the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’.
Also, the Ministry of Corporate Affairs (MCA) has issued Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.

“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 a statement.
It further said the initiative will boost foreign investment flows, unlock growth opportunities and broaden the investor base for Indian companies.

At present, 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.

International stock exchanges at GIFT-IFSC – India International Exchange and NSE International Exchange – have been prescribed as permitted stock exchanges.

These exchanges are under the regulatory supervision of the International Financial Services Centres Authority (IFSCA).

This policy initiative to enable the listing of Indian companies in GIFT IFSC will reshape the Indian capital market landscape and offers Indian companies, especially start-ups and firms in the sunrise and technology sectors, an alternative avenue to access global capital beyond the domestic exchanges, the statement said. — PTI