Govt allows direct listing of startups on GIFT IFSC
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Finance Ministry notifies rules for direct listing of startups at GIFT IFSC
By Our Special Correspondent
New Delhi, August 29: Department of Economic Affairs has amended Securities Contracts Regulation Rules (SCRR), 1956, to facilitate direct listing of securities by public Indian companies on International Exchanges of GIFT IFSC.
“New amendments facilitate easier access to global capital for Indian start-ups and companies in sunrise and technology sectors,” said the Ministry of Finance in a media statement.
It stated that the “amendments underscore Government’s commitment to providing an agile and world-class regulatory and business environment at IFSCs, thereby strengthening India’s position in global financial system”.
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The Department of Economic Affairs, Ministry of Finance, has amended the Securities Contracts Regulation Rules (SCRR), 1956 to ease the listing requirements for Indian companies seeking to list on international exchanges within International Financial Service Centres (IFSCs) at par with global standards.
“Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme under the Foreign Exchange Management (Non-Debt Instruments), 2019 and Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 together, provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international stock exchanges at GIFT-IFSC,” added the Ministry in the statement.
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The Ministry listed out new rules which stipulate that “for public Indian companies desiring to list solely on international exchanges in IFSCs, the minimum offer and allotment to the public as per the offer document shall be at least 10% of the post-issue capital”.
“The continuous listing requirement for such companies has also been set at 10%, as outlined under Rules 19 (2)(b) and 19A of the SCRR. By reducing these thresholds, the amendments in SCRR facilitate easier access to global capital for Indian start-ups and companies in the sunrise and the technology sectors,” added the Ministry of Finance in the media statement.
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This will particularly benefit Indian companies going global and having ambitions to look at opportunities for expanding their presence in other markets, added the Ministry.
“This initiative underscores the Government’s commitment to providing an agile and world-class regulatory and business environment in the IFSCs, thereby strengthening India’s position in the global financial system,” added the Ministry of Finance.
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