Indian stocks to be listed on GIFT City’s exchanges
According to the notification, the eligible exchanges are the India International Exchange and NSE International Exchange
Updated: Jan 25th, 2024
A first step towards Indian stocks’ direct listing on international markets was taken by the Centre, as it will now allow Indian companies to directly list at the GIFT exchange.
“The Government of India has on Jan 24, 2024, notified the Foreign Exchange Management (non-debt instruments) Amendment Rules, 2024, and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024, providing the framework for direct listing of equity shares by public Indian companies on the International Exchanges at GIFT IFSC,” stated the official notification of the finance ministry.
According to the notification, the eligible exchanges are the India International Exchange and NSE International Exchange.
The much-awaited direct listing of stocks at the International Financial Services Centre (IFSC) in GIFT City would happen soon to enable Indian companies to access global funds easily, finance minister Nirmala Sitharaman said at the recent Vibrant Gujarat Global Summit.
“We are going through the process in a very systematic manner, and I am confident it will happen at the earliest,” she stated. Speaking at the seminar ‘GIFT City: An Aspiration of Modern India’, the finance minister said IFSC should shoulder the responsibility of being the gateway to the world in fulfilling the vision for India to become a developed nation by 2047.
What is a direct listing?
“Direct listing of equity shares of companies incorporated in India on the International Exchanges Scheme” (the direct listing scheme) provides a framework for issuing and listing equity shares of public Indian companies on international exchanges.
With this scheme, non-resident Indians (NRIs) are permitted to buy or sell shares of an Indian company listed on an international exchange.
(With inputs from IANS)
