NEW DELHI, Aug 29 : The government has amended the Securities Contracts Rules thereby reducing the minimum public float requirements from existing 25 percent to 10 percent, a move that will attract both Indian and foreign companies to list in the international stock exchanges at GIFT City, Gujarat.
The Department of Economic Affairs, Ministry of Finance, has amended the Securities Contracts Regulation Rules (SCRR), 1956 to ease the listing requirements for Indian companies seeking to list on international exchanges within International Financial Service Centres (IFSCs) at par with global standards, the Finance Ministry said in a statement.
‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’ under the Foreign Exchange Management (Non-Debt Instruments), 2019 and Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 together, provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international stock exchanges at GIFT-IFSC.
To further facilitate this, the new rules stipulate that for public Indian companies desiring to list solely on international exchanges in IFSCs, the minimum offer and allotment to the public as per the offer document shall be at least 10% of the post-issue capital.
The decision is likely to enable Indian startups and unicorns to access a larger pool of foreign capital, sources in the market said, adding that startups especially in the technology and other emerging sectors can target direct listing in the bourses at GIFT City, which is the country’s sole international financial services centre (IFSC).
The continuous listing requirement for such companies has also been set at 10%, as outlined under the specified Rules.
“By reducing these thresholds, the amendments in SCRR facilitate easier access to global capital for Indian start-ups and companies in the sunrise and the technology sectors. This will particularly benefit Indian companies going global and having ambitions to look at opportunities for expanding their presence in other markets,” the Government notification said.
This initiative underscores the Government’s commitment to providing an agile and world-class regulatory and business environment in the IFSCs, thereby strengthening India’s position in the global financial system. (UNI)
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