Finance Ministry Eases Listing Norms at IFSC to Attract Global Investments

The finance ministry has reduced the minimum public float requirement to 10% from 25% to encourage companies to list on stock exchanges at IFSC, Gandhinagar. The amendments facilitate easier global capital access for Indian companies, particularly in startup and tech sectors, aligning with world-class regulatory standards.

The finance ministry has announced a significant reduction in the minimum public float requirement for companies listing on stock exchanges at the International Financial Services Centre (IFSC) in Gandhinagar, lowering it from 25% to 10%. This move aims to attract more companies to list at GIFT City, India's first IFSC, leveraging a favorable regulatory environment under the Special Economic Zone Act, 2005.

The Department of Economic Affairs has revised the Securities Contracts Regulation Rules (SCRR), 1956, harmonizing them with global standards to simplify listing requirements for Indian companies on international exchanges within IFSCs. This enables Indian companies to directly list equity shares on international exchanges as per the Foreign Exchange Management (Non-Debt Instruments), 2019 and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.

The amended rules require Indian companies aiming to list solely on international exchanges within IFSCs to ensure a minimum public offer and allotment of at least 10% of the post-issue capital. According to official sources, these changes will facilitate easier access to international capital for Indian startups and firms in the sunrise and technology sectors, reinforcing India's commitment to providing a world-class regulatory and business environment in IFSCs.

Mayank Arora, Regulatory Director at Nangia Andersen India, and Reserve Bank Governor Shaktikanta Das have both highlighted the potential of these amendments to encourage both Indian and foreign companies to explore listing on IFSC exchanges, including the anticipated commencement of sovereign green bonds trading.

(With inputs from agencies.)