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Indian Firms Can Now List On Gujarat Finance Hub To Draw Foreign Funds

New Delhi:

The centre has allowed its firms to list on exchanges registered in a new financial hub in Gujarat, Finance Minister Nirmala Sitharaman said on Friday, to give companies access to easier and cheaper foreign capital.

Listed and unlisted companies can list their shares in the International Financial Services Centre (IFSC) housed in the Gujarat International Financial Tech City (GIFT), which is Prime Minister Narendra Modi’s flagship project.

“I’m pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on the IFSC exchanges,” Ms Sitharaman said.

GIFT-IFSC is a tax neutral financial center, which aims to compete with hubs like Singapore as it provides fiscal incentives and an easier regulatory environment to operate on.

Recently, the SGX Nifty, which was previously traded on the Singapore Exchange’s (SGX) platform, moved to NSE’s International Exchange (NSE IX) in GIFT City.

The IFSC houses two stock exchanges, one commodity bourse, and a bullion exchange.

Indian companies can currently only list on foreign exchanges through instruments such as depository receipts.

The government had announced plans in 2020 to allow firms to have their primary listings on foreign exchanges. But in the face of opposition from nationalist groups such as the Swadeshi Jagran Manch, the economic wing of the RSS, New Delhi had frozen such plans saying it will look to bolster its own capital markets.

The government has said companies can use the IFSC route to access similar benefits of foreign capital.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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The Indian government has made the decision to allow its firms to list on exchanges registered in a new financial hub in Gujarat, according to Finance Minister Nirmala Sitharaman. This move aims to provide easier and less expensive access to foreign capital for companies. Previously, Indian companies could only list on foreign exchanges through instruments like depository receipts. However, now listed and unlisted companies have the opportunity to list their shares in the International Financial Services Centre (IFSC) located in the Gujarat International Financial Tech City (GIFT), which is Prime Minister Narendra Modi’s flagship project.

Ms Sitharaman stated, “I’m pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on the IFSC exchanges.” This step is significant as GIFT-IFSC, being a tax neutral financial center, aims to compete with other financial hubs like Singapore by providing fiscal incentives and an easier regulatory environment for companies to operate in. It offers similar benefits of foreign capital to Indian companies. The IFSC in GIFT City houses two stock exchanges, one commodity bourse, and a bullion exchange, further enhancing its attractiveness as a financial hub.

In addition, it is worth noting that the AI legalese decoder can play a crucial role in this situation. Legalese is the specialized language used in legal documents, contracts, and agreements, which can often be complex and difficult for non-lawyers to understand. The AI legalese decoder utilizes artificial intelligence technology to decode and simplify legalese, making it more accessible to individuals and businesses. In the context of enabling direct listings of companies on the IFSC exchanges, the AI legalese decoder can help simplify the legal documentation and procedures involved, ensuring companies have a clear understanding of the requirements and benefits associated with listing on the IFSC exchanges. This can streamline the process and facilitate greater participation of Indian firms in the new financial hub, ultimately attracting more foreign funds.

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