Nirmala Sitharaman: Indian companies will now be able to list directly in foreign markets, Finance Minister announced.

Shares of Indian companies can now be directly listed on foreign exchanges and IFSC located in Ahmedabad. Finance Minister Nirmala Sitharaman has announced this. Finance Minister Nirmala Sitharaman said Indian companies can now directly list on foreign exchanges as well as on the International Financial Services Center (IFSC) in Ahmedabad.

Its approval comes three years after it was announced as part of the Covid relief package. The approval will enable domestic companies to access foreign funds by listing their shares on various exchanges abroad. A proposal in this regard was first issued in May 2020 as part of the liquidity package announced during the pandemic.

“Direct listing of securities by domestic companies in foreign jurisdictions will be permitted,” he said. The Finance Minister said that I am also happy to announce that the government has decided to enable direct listing of listed and unlisted companies on IFSC exchange. So, this is a big step forward. Sitharaman said this would help in access to global capital and better valuations.

The minister made the announcement at an event to launch AMC Repo Clearing and Corporate Debt Market Development Fund to help strengthen the corporate bond market. According to Finance Minister Nirmala Sitharaman, approval has been given for direct listing of securities in foreign jurisdictions. With this, Indian companies will now be able to list directly on GIFT IFAC.

Finance Minister Nirmala Sitharaman on Friday said that before taking any decision, regulatory impact assessment should be done to study its positive and negative aspects. He said that having such a facility can help in increasing transparency and accountability in the policy making process.