India Eases Rules for Companies to List Shares Internationally at GIFT City

The Department of Economic Affairs under the Ministry of Finance has updated the Securities Contracts Regulation Rules (SCRR), 1956. These changes aim to streamline the listing requirements for Indian companies looking to list their shares on international exchanges within International Financial Service Centres (IFSCs), particularly at Gujarat International Finance Tech-City (GIFT City) in Gujarat.

The amendments are designed to help Indian companies, especially those in the start-up, sunrise, and technology sectors, access global capital markets more easily. This is part of a broader initiative to align India's financial regulations with global standards, facilitating the direct listing of equity shares by public Indian companies on international exchanges.

Under the 'Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme,' a regulatory framework has been established. This framework allows Indian companies to issue and list their shares on permitted international stock exchanges within the GIFT IFSC.

Indian companies aiming for an exclusive listing on international exchanges within IFSCs must ensure that at least 10% of the post-issue capital is offered and allotted to the public as per the offer document. The continuous listing requirement for these companies is also set at 10%, ensuring a certain level of public float, consistent with international best practices.

By reducing the thresholds for public offers and continuous listing requirements, the amendments lower the barriers for Indian companies, particularly start-ups and those in emerging sectors, to access global capital. These changes are expected to benefit Indian firms with global ambitions, enabling them to expand their market presence and tap into new opportunities abroad.