Finance Minister Nirmala Sitharaman has announced that Indian companies will now have the opportunity to directly list on foreign exchanges and the International Financial Services Centre (IFSC) in Ahmedabad. This provision, part of the Covid relief package introduced in May 2020, has been approved by the government, but the specific rules are yet to be notified.
The move to allow direct overseas listing will enable Indian companies to access foreign funds from various international exchanges. Additionally, the government’s decision to enable the direct listing of both listed and unlisted companies on IFSC exchanges is seen as a significant step.
The IFSC exchange will also serve as a backstop facility for specified debt funds during periods of debt market stress. It will involve purchasing investment-grade corporate debt securities to bolster confidence in the corporate debt markets and provide support to mutual funds and investors.
Overall, the move is expected to improve access to international markets for Indian companies and strengthen the country’s position in the global financial landscape.
Keywords: Finance Minister, direct overseas listing, IFSC, Indian companies, foreign exchanges, Covid relief package, investment-grade corporate debt securities, mutual funds, global financial landscape.
