In order to provide accessibility to global capital funding for Indian listed companies, the Department of Economic Affairs, Ministry of Finance introduced amendments to the Securities Contracts (Regulation) Rules, 1957 (SCR Rules) on August 28, 2024, permitting public listed companies to list their securities on international exchanges domiciled in Gujarat International Fin-Tech City International Financial Services Centre (GIFT City IFSC).
In terms of the amendments, the minimum public offer and allotment requirement for Indian public companies intending to list on international exchanges based out of GIFT City IFSC has been reduced from 25% (applicable to companies having post-issue capital of less than or equal to INR 1,600 crores proposing to list securities on domestic stock exchanges) to 10% of each class or kind of equity shares or debenture convertible into equity shares issued, irrespective of the post-issue capital of such companies. Similarly, such companies have been granted relaxation with respect to continuous listing requirements prescribed for listed companies under the SCR Rules.
These amendments to the SCR Rules reinforce amendments already made to the Foreign Exchange Management (Non-Debt Instruments) Regulations, 2019 and introduction of Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 in light of the ‘direct listing of equity shares of companies incorporated in India on international exchanges scheme.’ All these amendments together constitute a comprehensive regulatory framework permitting and governing various aspects of the issuance and listing of securities by Indian public companies on recognized international stock exchanges operating out of GIFT City IFSC.
Conclusion
These amendments enable Indian corporates to access international funding and stock markets.