Soon, GIFT City will authorize the direct listing of Indian firms on overseas exchanges: Examine

 Soon, GIFT City will authorize the direct listing of Indian firms on overseas exchanges: Examine

According to Moneycontrol, an official announcement on the direct listing of Indian firms on foreign exchanges at the International Financial Services Centre (IFSC) in Gujarat International Financial Tech (GIFT) City is expected to be issued shortly.

Addressing the Asia Securities Forum AGM in Mumbai, IFSCA chairman K Rajaraman told Moneycontrol, "It is awaiting the PMO approval as well as could be out anytime soon." In ten to fifteen days, the working group's recommendations—which it will coordinate with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi)—will also be released. Then, during the occurrence, he told Moneycontrol, "we can make the necessary amendments for allowing the procedure by the end of the year."

Additionally, Rajaraman disclosed to Moneycontrol that "about 68 alternative investment funds, established by roughly 78 fund managers in GIFT City, have a $20 billion target, of which approximately $4 billion have been committed and approximately $1 billion have been invested in India." These consist of a combination of private equity, venture capital, and hedge funds."

The benefits of trading in GIFT City, according to the study, are straightforward: every deal is denominated in US dollars. The article claims that this will do away with the need for international investors to pay extra for currency conversion and hedging. According to Moneycontrol, the monthly transaction on IFSC international stock markets was $67.3 billion in September 2023.

The study states that revenue from offshore investments made by a non-resident investor via an AIF established in an IFSC is not subject to taxation. According to the study, IFSC is regarded legally as a jurisdiction that offers financial services in foreign currency and is distinct from the rest of India.