GIFT City, short for Gujarat International Finance Tec-City, is an ambitious project set up by the Indian government to create a global financial hub in Gujarat, India. One of its key components is the establishment of IFSCs, which are designated areas with special regulations and tax incentives to promote international financial services.
The IFSC exchanges in GIFT City provide a platform for trading in various financial instruments, including equities, derivatives, and commodities. They are designed to attract foreign investors and facilitate easier access to global markets for Indian companies.Source:- business standard
By permitting Indian companies to directly list on IFSC exchanges, the government aimed to encourage businesses to raise capital from international investors while also providing foreign investors with greater opportunities to invest in Indian companies. This move intended to boost the overall competitiveness of Indian businesses and attract foreign investment into the country.
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Direct listing on IFSC exchanges can offer several advantages for Indian companies. Firstly, it allows them to access a broader pool of investors from across the globe, potentially leading to increased liquidity and valuation of their shares. Additionally, listing in GIFT City may offer regulatory benefits and reduced compliance burden compared to other international exchanges, making it an attractive option for Indian companies seeking global expansion.
Furthermore, for foreign investors, investing in Indian companies listed on IFSC exchanges can provide exposure to the Indian market with the added benefits of the IFSC’s regulatory framework and tax advantages.
It is essential to note that regulations and policies may have evolved since my last update in September 2021. Therefore, it’s advisable to refer to the latest guidelines and announcements from relevant authorities for the most up-to-date information on listing procedures and requirements for Indian companies on IFSC exchanges in GIFT City
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