Unlisted companies to list on GIFT City IFSC in 3 months, says Chairperson K Rajaraman

Indian companies can expect to get the direct listing facility in another six months. This is the word coming from K Rajaraman, Chairperson of GIFT City IFSC.

Speaking to CNBC-TV18 on the sidelines of an event at PHDCCI in Delhi, Rajaraman said Indian entities including listed and unlisted companies will be able to list on the GIFT market in another six months.

He said unlisted companies may be able to list on the GIFT market in another 3-4 months. Rajaraman emphasised that the Government of India has already laid down regulations for a direct listing, establishing the groundwork for this transformative step in the financial landscape.

The Internal Committee of IFSCA has actively recommended amendments to regulations, forwarding these proposals to both SEBI and RBI. The initial phase of direct listings in GIFT City is expected to feature unlisted companies, with a projected timeline of 3-4 months for their entry into the market. Subsequently, listed companies are anticipated to follow suit, with an estimated timeline of 6 months.

"GOI regulations for direct listing are already in place. The internal committee of IFSCA has recommended the amendments for regulations to SEBI and RBI. Unlisted companies will be the first set to list directly in GIFT City.

SEBI is in the process of amending regulations to allow listed entities to be listed in GIFT City. Unlisted companies to come to the GIFT market in 3-4 months, listed companies will take 6 months. Startups and companies with global ambitions can raise forex capital. Startups and tech companies can get better valuations in GIFT city," Rajaraman said.

To ensure regulatory compliance, startups seeking to list in GIFT City must adhere to established regulations, reflecting the city's commitment to maintaining robust financial standards.

Notably, fintechs hold significant value in GIFT City, particularly for Non-Resident Indians (NRIs). Five fintechs have already obtained authorization for operations in GIFT City, with an additional 45 fintechs currently participating in the regulatory and innovation sandbox.

Additionally, the Finance Ministry's recent notification regarding the direct listing of Indian companies on GIFT City's exchanges has drawn attention. This move is anticipated to empower startups and unlisted companies to access global capital, offering an alternative avenue beyond domestic exchanges.

The Finance Ministry stated, "This policy initiative will reshape the Indian capital market landscape," underscoring its potential impact on India's financial sector.