Indian companies can now directly list on the International Financial Services Centre (IFSC) in Gujarat’s GIFT City, finance minister Nirmala Sitharaman said. Sitharaman, who was speaking at an event organised by markets regulator Sebi, said the move would help Indian companies access capital from investors from around the world and also get better valuations.
At present, Indian companies are allowed to list in overseas markets through the American Depository Receipt (ADR) and Global Depository Receipt (GDR) routes. Once the listing of Indian companies on IFSC exchanges is cleared, listing of these entities on foreign bourses could follow.
The move comes several years after the law was amended to provide for direct listing. However, things in this direction had moved in recent months after the finance minister in the 2020 Budget announced that the modalities would soon be in place for overseas listing of Indian companies.
Detailed rules are expected to be notified soon, a senior finance ministry official said. The FM also said that a securities markets code - which combines the three current acts related to the securities markets (SCRA, Sebi Act and Depositories Act) - will be a reality soon.