Finance Minister Nirmala Sitharaman on Friday, June 28, said domestic companies could now go in for direct listing on foreign exchanges and the International Financial Services Centre (IFSC) in Ahmedabad. Direct listing will allow Indian companies to access foreign funds on various exchanges overseas.
“Direct listing of securities by domestic companies will now be permissible in foreign jurisdictions. I’m also pleased to announce that the government has taken a decision to enable the direct listing of listed and unlisted companies on IFSC exchanges. So, this is a major step forward. This will facilitate access to global capital and better valuation,” said Sitharaman while speaking at an event to launch a corporate debt market development fund (CDMDF), which is a bailout facility for debt funds. The provisions for direct overseas listing were approved by the government as part of the Covid relief package announced in May 2020 but the rules in this regard are yet to be notified. Source: TNS