Direct listing in GIFT city likely in 2-3 months- IFSCA chairperson

The direct listing of companies on the exchanges in GIFT city can happen in the next 2-3 months, according to K Rajaraman, chairperson of the International Financial Services Centre Authority (IFSCA). Rajaraman said the amended guidelines for the direct listing will be issued within a month.

IFSCA, which is the regulatory authority for the Gujarat-based GIFT city, has already issued initial set of guidelines for the direct listing regulations. Rajaraman clarified that unlisted companies can go ahead with the direct listing on GIFT IFSC even now, and that the amendments are only aimed at providing better clarity.

“We realized that our listing regulations needed an update. We have gone through public consultation process and will likely place amended rules for approval at the end of this month,” Rajaraman said at the sidelines of a BSE event.

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IFSCA had said in its consultation paper that the sub-committee has made recommendations on various regulatory issues such as initial public offer, use of accounting standards, and disclosures based on comparative analysis of the practices followed in other jurisdictions.

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Indian government had announced its decision to allow direct listing of equity shares of public Indian companies on the international exchanges in the IFSC in July 2023.

Currently, NSE’s subsidiary NSE International Exchange (NSE IX) and BSE’s subsidiary India International Exchange (India INX) are located in the GIFT city. The two arms were in the discussion for a merger, but it was called off last month.

On the IFSC listing of listed Indian companies, Rajaraman said the IFSCA is waiting for SEBI regulations, which will likely be out in 2-3 months. “We have provided our inputs. SEBI is now in the process of amending its regulations,” he said.

The Indian-listed companies may be allowed to get listed on international exchanges in IFSC by way of follow-on public offer (FPO).

Rajaraman said currently there are 50 brokers registered with the IFSCA and that he expects more brokers to come in. “Many of the banks are already registered with us as merchant bankers. Other banks will also likely pick-up based on the outlook for direct listing,” he said.

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