Indian firms can directly list overseas via IFSC: Finance Minister
Finance Minister Nirmala Sitaraman has stated that Indian companies can easily list overseas via the IFSC. At the moment, companies can only list their stocks on overseas markets by utilising American Depository Receipts or Global Depository Receipts.
MUMBAI: The International Financial Services Centre (IFSC) in Gujarat International Financial Tech (GIFT) City would allow Indian companies to list their shares directly on foreign markets, according to a Friday announcement by Finance Minister Nirmala Sitharaman.
Public and privately held Indian businesses will be able to access international capital and receive higher valuations as a result of the decision.
At a Mumbai event, she declared, “I had announced in May 2020 that direct listing of securities by Indian public corporations will be permitted in foreign jurisdictions.
I’m happy to report that the government has decided to allow both listed and unlisted companies to list directly on the IFSC markets. This will make it easier for Indian businesses to obtain foreign money and raise their worth, she continued.
As a part of the Covid relief package unveiled in May 2020, the government authorised the provisions for direct overseas listing. Currently, American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) are used for foreign listings by domestically listed businesses. Depository receipts that can be listed on international markets may only be issued by listed corporations.
The regulations for Indian companies’ direct overseas listing would be announced in a few weeks, according to a senior government official present at the event. Domestic companies will be able to list initially on the IFSC and afterwards in a certain seven or eight foreign jurisdictions.
For the growth of the corporate bond market in India, the Finance Minister inaugurated AMC Repo Clearing Ltd. (ARCL) and introduced the Corporate Debt Market Development Fund (CDMDF).
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