Expecting direct listing of cos in GIFT City by April 2024: IFSCA chief

The industry players say that the new avenue will help startups and unlisted companies access global capital

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 GIFT City.

The IFSCA chairperson 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, the Reserve Bank of India (RBI) may issue some rules on overseas investment regulations. The Securities and Exchange Board of India (Sebi) too will need to amend norms to allow already listed companies to list there (at IFSC),” said chairperson K Rajaraman on the sidelines of IVCA Private Credit Summit held in Mumbai.

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 a 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) drive 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 NSE, Rajaraman said that they expect the finalisation by January 2024.

As per sources, both the exchanges have been in discussion on the swap ratio before filing an application for the merger to the National Company Law Tribunal (NCLT).

Further, on the proposal to allow Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)’ aggregate investment in foreign portfolio investments (FPIs) based in IFSCs, the chairperson said that the decision is to be taken by the market regulator.