The International Financial Services Centres Authority (IFSCA) is gearing up to announce revised norms for the direct listing of companies on the Gujarat International Finance Tec (GIFT) City exchanges by early July. K Rajaraman, the chairman of IFSCA, revealed this plan, emphasizing the need to update regulations based on feedback from various stakeholders.
The new norms, set to be approved by the end of June and notified shortly after, aim to facilitate a smoother process for companies seeking to list directly on the GIFT City exchanges. While specifics regarding the changes were not disclosed, Rajaraman indicated that the updates would address evolving market dynamics and streamline listing regulations.
Currently, unlisted companies can list on the international exchanges within GIFT City. However, under the revised norms, companies will be able to avail themselves of the new listing framework by August, offering them enhanced opportunities for capital raising and market access.
In January of this year, the Central Government had initially introduced rules for the direct listing of Indian companies on the GIFT City exchanges. However, further amendments are necessary from the Securities and Exchange Board of India (SEBI) to enable companies listed in India to access foreign capital through GIFT City. Rajaraman estimated that SEBI’s regulatory adjustments could take up to three months, with IFSCA already providing inputs on the matter.
Rajaraman highlighted the potential of the direct listing route for technology startups and companies engaged in sectors like ecommerce, particularly those with overseas headquarters and significant Indian operations. He expressed confidence that this avenue would attract global capital, fostering growth and investment opportunities.
Moreover, Rajaraman underscored the positive impact of direct listings on the brokerage and merchant banking landscape within GIFT City, projecting an expansion in the number of firms operating in the financial services sector. Currently, the city hosts 50 brokerages, primarily trading in the Nifty50.
The move towards direct listing aligns with the government’s vision to position GIFT City as a premier global financial hub and an attractive offshore destination for startups and investors alike. Recent developments, such as the launch of new funds by Unifi Capital and significant investments from entities like the Abu Dhabi Investment Authority (ADIA), underscore the growing momentum and investor interest in GIFT City as a thriving financial ecosystem.
As the regulatory framework evolves and market dynamics continue to shift, the revised norms for direct listings are poised to enhance GIFT City’s standing as a preferred destination for companies seeking efficient access to capital markets and global investors.
