The Department of Economic Affairs recently amended the Securities Contracts Regulation Rules (SCRR), 1956 for Indian companies seeking to list on international exchanges.
Key changes in Securities Contracts Regulation Rules (SCRR), 1956:
- This was to streamline listing requirements for Indian companies on international exchanges within International Financial Service Centres (IFSCs).
- The new regulatory framework includes the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’ under certain rules.
- It includes the Foreign Exchange Management (Non-Debt Instruments), 2019 and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024.
- This enables Indian companies to issue and list shares on international stock exchanges at GIFT-IFSC.
- The amendments specify that for Indian companies listing solely on international exchanges in IFSCs, the minimum public offer must be at least 10% of the post-issue capital.
- Additionally, the continuous listing requirement is also set at 10%, aligning with Rules 19 (2)(b) and 19A of the SCRR.
- These changes lower the thresholds for listing, making it easier for Indian start-ups and companies in emerging and technology sectors to access global capital.
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Frequently Asked Question:
What are the new minimum requirements for listing on international exchanges in IFSCs?
For Indian companies listing solely on international exchanges within IFSCs, the minimum public offer must be at least 10% of the post-issue capital.
How do these changes benefit Indian companies?
These changes lower the thresholds for listing, making it more accessible for Indian start-ups and companies, especially in emerging and technology sectors, to raise capital from international markets. It aids companies aiming to expand their international presence.
What does the new regulatory framework enable?
The framework enables Indian companies to issue and list their shares on international stock exchanges located at GIFT-IFSC, enhancing their ability to tap into global capital markets.