The finance ministry today notified direct listing of Indian companies (Public companies that are listed or unlisted) on GIFT City’s exchanges. Such listings are for now limited to the International Financial Services Centre at the Gujarat International Financial Tech-City.
MCA rules governing the listing of equity shares has specified that Nidhi companies, companies having negative net worth, and those having outstanding deposits from the public, will not be eligible for listing as part of this scheme. Also Private companies will not be eligible for listing.
This development will allows Indian companies the flexibility to access both the domestic and international markets for raising capital in rupees and foreign currency.
Here is the Gazetter notification,
Foreign Exchange Management (Nondebt Instruments) Amendment Rules, 2024…pdf (677.7 KB)
There are a few FAQs also that will be helpful to understand the Gazette notification better,
FAQs on Direct Listing Scheme.pdf (265.4 KB)
Retail investors might have these two questions, sharing this snippet from FAQ for easier access.
