India International Exchange Ltd (India INX), the first international exchange at GIFT IFSC, is currently in discussions with five unlisted Indian companies to initiate the process of direct listing on stock exchanges in GIFT City, Gujarat.
Vijay Krishnamurthy, Managing Director and Chief Executive Officer of India INX, mentioned that five Indian companies have approached them for direct listing, with some discussions being in advanced stages while others are in the initial phase. He expressed optimism that by the end of the financial year, at least one major company will be listed.
When questioned about the delay in direct listing in GIFT IFSC, Krishnamurthy attributed it to the regulations being published by IFSCA only in August 2024. He emphasized the interest among companies for direct listing and highlighted the benefits for businesses with operations outside of India, operating in foreign currencies.
Krishnamurthy pointed out that regulations from SEBI are awaited to bring listed companies to GIFT IFSC. He discussed the benefits and challenges associated with listing in GIFT IFSC, citing advantages such as minimal share offloading requirements but acknowledging the absence of current trading activity due to the limited number of listed companies.
The issuer is required to seek in-principle approval for listing of specified securities from a recognized stock exchange, with eligibility criteria including operating revenue of at least $20 million or a pre-tax profit of $1 million in the last financial year.
The India INX official emphasized the need for trading activity to increase with a higher number of listed companies, addressing the initial apprehensions of unlisted Indian companies considering listing in the Indian market.
As of now, the IFSCA has completed preparations for direct stock listing on exchanges in GIFT IFSC, with regulations in place to facilitate the listing of equity instruments, bonds, and other permitted financial products on international stock exchanges.
The aim is to attract more companies to list in GIFT IFSC, leveraging the advantageous regulations and positioning GIFT City as a prominent financial hub in India.
