Govt amends rules to facilitate overseas listing of Indian companies through IFSC

The finance ministry has amended Securities Contracts Regulation Rules (SCRR), 1956, to facilitate Indian companies to directly list securities on international exchanges of GIFT IFSC.

The new amendments provide a regulatory framework that would facilitate easier access to global capital for Indian start-ups and companies in emerging technology sectors, according to a Department of Economic Affairs release 

The amendments provide a regulatory framework that is more agile and conforming to global standards, which would also strengthen India's position in global financial system. The release pointed out.

Under the amended rules, listed Indian companies wanting to list solely on international exchanges in IFSCs, should issue and allot a minimum 10 per cent of its post-issue share capital to the public. Subsequent share issues on the international market should also be of an equivalent size.

offer and allotment to shares to the public should be at least 10 per cent of the post-issue capital.

Continuous Listing Requirements: The continuous listing requirement for such companies has also been set at 10%, as outlined under Rules 19 (2)(b) and 19A of the SCRR.

The reduction in the thresholds for share issue through amendments to the SCRR allows Indian start-ups to easily access overseas capital, facilitating globalization of Indian companies as well.