The government now permits Indian firms to directly list in the special zone, even if they are not listed elsewhere on any of the domestic markets, in an effort to increase the appeal of GIFT IFSC. 

In-depth details about according to FM Nirmala Sitharaman, Indian companies can list immediately in GIFT IFSC

When introducing the Corporate Debt Market Development Fund (CDMDF) in Mumbai on Friday, Union Finance Minister Nirmala Sitharaman announced that the government has given the Indian corporations the go-ahead to directly list on exchanges in the GIFT International Financial Services Centre (IFSC). 

“The government has decided to allow listed and unlisted companies to list directly on the IFSC markets. This is a significant step forward that will provide Indian companies access to international financing and improve their valuation, according to the finance minister. 

It is important to emphasize that the government’s goal for the GIFT IFSC goes well beyond conventional finance and extends into the field of thought leadership, she continued. 

This is significant because the government first proposed allowing Indian companies to immediately list in foreign jurisdictions in May 2020. India’s first IFSC is a special economic zone (SEZ) that provides numerous incentives and perks similar to those found in foreign jurisdictions, thus it isn’t quite a foreign location. 

The notification allowing Indian businesses to list on GIFT IFSC bourses will be released soon, according to a senior finance ministry official present at the event, and moving forward, a few overseas jurisdictions will also be added to the list of permitted jurisdictions.

The majority of the major Indian and international banking institutions, as well as both of the national-level stock exchanges—BSE and the National Stock Exchange (NSE)—have a presence in GIFT IFSC. Nearly all of the top players in the BFSI arena have participated in the special zone during the past couple of years. 

Due to the rising popularity of Gift Nifty derivatives, which have been clocking record volumes, GIFT IFSC has recently been in the spotlight. 

Access to Gift Nifty 50, Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT futures contracts are all available through Gift Nifty. The fact that these contracts are accessible for approximately 21 hours, which includes US, European, and Asian trading hours, is even more significant.  

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