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In a recent development, the Department of Economic Affairs, Ministry of Finance has amended the Securities Contracts Regulation Rules (SCRR), 1956 to simplify the listing requirements for Indian companies seeking to list on international exchanges within International Financial Service Centres (IFSCs).
To further facilitate this, the new rules stipulate that:
- Minimum public offer: 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 should be at least 10% of the post-issue capital.
- Continuous listing requirements: The continuous listing requirement for such companies has also been set at 10%
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, said the government.
The move aims to bring GIFT city at par with global standards. Also, it will allow foreign investors and NRIs to participate in India’s growth story with ease of investments.