India News | Govt Allows Direct Listing of Indian Cos on International Exchanges of GIFT IFSC
Get latest articles and stories on India at LatestLY. The government on Wednesday permitted the direct listing of securities by Indian companies on international exchanges of GIFT IFSC to boost foreign investments.
New Delhi, Jan 24 (PTI) The government on Wednesday permitted the direct listing of securities by Indian companies on international exchanges of GIFT IFSC to boost foreign investments.
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'.
Also, the Ministry of Corporate Affairs (MCA) has issued Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.
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.
"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.
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.
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 International Financial Services Centres Authority (IFSCA).
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)