Union Finance Minister Nirmala Sitharaman has said that Indian companies will now be permitted by the government to go in for direct listing on foreign exchanges as well as on the International Financial Services Centre (IFSC) bourse in Ahmedabad.In May 2020, I had said that the Direct Listing of Securities by Indian public companies would be permissible in foreign jurisdictions. Now, I am pleased to announce that the Government has taken a decision to enable the Direct Listing of listed & unlisted companies on IFSC… pic.twitter.com/USC60TgL6o— Nirmala Sitharaman Office (@nsitharamanoffc) July 28, 2023The decision to allow the direct listing of domestic companies on foreign exchanges was announced three years ago as a part of the governments relief package during the COVID pandemic. Indian companies will now be able to access foreign funds by listing their shares at various overseas exchanges.“I had said in May 2020 that direct listing of securities by Indian public companies would be permissible in foreign jurisdictions,” FM Sitharaman said during an event in Mumbai on Friday.Indian companies can list on IFSC even if unlisted: Nirmala SitharamanOther than confirming the governments decision to allow domestic companies to list in foreign markets, the Finance Minister also announced that both listed and unlisted companies will now be able to opt for direct listing at the IFSC exchange.“Im also pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on the IFSC exchange. So, this is a major step forward. This will facilitate access to global capital and better valuation,” Sitharaman said.With this decision, domestic companies will now be able to list directly at the GIFT IFSC special zone even if they are not listed elsewhere on any other exchanges in the country.Nirmala Sitharaman made the announcements while attending the event in Mumbai, where she also inaugurated the AMC Repo Clearing Ltd. (ARCL) and the Corporate Debt Market Development Fund (CDMDF) for the development of the Corporate Bond Market in India.
