Union Finance Minister Nirmala Sitharaman on Friday stated Indian companies can now go in for direct listing on international exchanges and on the International Financial Services Centre (IFSC) bourse in Ahmedabad. “A direct listing of securities by domestic companies will now be permissible in foreign jurisdictions. I’m also pleased to announce that the government has taken a decision to enable the direct listing of listed and unlisted companies on the IFSC exchange. So, this is a major step forward. This will facilitate access to global capital and better valuation,” Sitharmanan stated.
The Finance Minister was talking at an occasion to launch AMC Repo Clearing and a company debt market improvement fund to assist deepen the company bond market in Mumbai.
The determination will allow home companies to entry international funds by listing their shares on numerous exchanges overseas. A proposal relating to this was first floated as a part of the liquidity package deal introduced in the course of the pandemic in May 2020.
She additionally advocated for a regulatory impact evaluation in order that regulated companies, specifically, and markets generally, might higher comprehend the implications of their choices.
She additionally requested monetary market regulators to focus on the standard, proportionality and effectiveness of their choices in order that companies discover additional ease in doing their enterprise. Urging giant municipal our bodies to faucet the debt market for their funding wants, Sitharaman stated the federal government has been and can proceed to incentivise cities to enhance their credit score scores in order that they get higher pricing for their bonds.
(With PTI inputs)
