Direct Listing: The Government of India has approved direct listing of securities by Indian companies on the international exchange of Gujarat International Finance Tech City (GIFT IFSC). This will increase foreign investment. Also There will also be opportunities for growth for Indian companies.
Finance Ministry approved
According to the Finance Ministry, this initiative announced by Union Finance and Corporate Affairs Minister Nirmala Sitharaman on July 28 last year will bring many positive changes in the Indian capital market. The Department of Economic Affairs (DEA), Ministry of Finance, has amended the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. Under this, direct listing has been allowed on the International Exchange Scheme. Also, the Ministry of Corporate Affairs (MCA) has issued the Companies Rules, 2024. It provides a comprehensive regulatory framework for Indian companies to issue and list their shares on permitted international exchanges.
SEBI will soon bring rules for listed companies
At present unlisted Indian companies can list their shares on international exchanges. Market regulator (SEBI) may soon issue guidelines for listed companies. International Stock Exchange i.e. India International Exchange and NSE International Exchange in GIFT City have been designated as stock exchanges under the new rules. The Companies (Amendment) Act, 2020 was the first to lay the foundation for direct listing of securities of listed companies on stock exchanges in India. These rules came into effect on October 30 last year.
Special benefit to solar and tech startups
This strategic step is expected to give a new shape to the Indian capital market. This will especially provide a new route to solar and tech startups to access funding. It is estimated that this will increase the valuation of Indian companies and they will become at par with global standards. GIFT IFSC is India's first international financial services centre. It serves as an important bridge connecting India to global financial opportunities.
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