2023-07-29 06:46:58
India has allowed its companies to list on stock exchanges registered in a new financial center in the western state of Gujarat, Finance Minister Nirmala Sitharaman said on Friday to give companies easier access and at a lower cost to foreign capital.
Listed and unlisted companies can list their shares at the International Financial Services Center (IFSC) located in the Gujarat International Financial Tech City (GIFT), which is Prime Minister Narendra Modi’s flagship project.
“I am pleased to announce that the government has taken the decision to allow direct listing of listed and unlisted companies on IFSC exchanges,” Ms Sitharaman said.
GIFT-IFSC is a tax-neutral financial centre, which aims to compete with centers such as Singapore by offering tax incentives and a more manageable regulatory environment.
Recently, the SGX Nifty, which was previously traded on the Singapore Stock Exchange (SGX) platform, was transferred to the NSE International Stock Exchange (NSE IX) in GIFT City.
The IFSC houses two stock exchanges, a commodity exchange and a goldsmith’s exchange.
Currently, Indian companies can only list on foreign stock exchanges through instruments such as certificates of deposit.
In 2020, the government announced its intention to allow companies to have their first listing on foreign stock exchanges. But faced with opposition from nationalist groups such as the Swadeshi Jagran Manch, the economic wing of Modis’ ruling party ideological parent, New Delhi had frozen those plans, saying it would seek to strengthen its own capital markets.
The government has said companies can use the IFSC route to access the same benefits as foreign capital. (Reporting by Aftab Ahmed; Writing by Muralikumar Anantharaman)
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