India’s new regulator for international finance, IFSCA, has announced a framework for listing depository receipts (DRs). It will enable both foreign and Indian companies to list their depository receipts (DRs) on the Gujarat International Finance Tec-city (GIFT) exchange and raise money. The new framework was announced at a time when SEBI in Mumbai is planning to finalise norms for allowing domestic companies to list overseas without listing in India.
GIFT stock exchange platform, where both the BSE and the National Stock Exchange (NSE) have a presence, is India’s answer to foreign jurisdictions that were taking away trading volumes from the domestic market. The current BJP-led NDA government is promoting GIFT as a rival to Singapore Stock Exchange (SGX) and Dubai Gold and Commodity Exchange (DGCX).
The IFSCA’s framework enables companies in global tax compliant jurisdictions across the world to list and trade such DRs on the stock exchange in GIFT IFSC. without any fresh public offering.
“While IFSCA has prescribed the framework for essential disclosure requirements such as financial statements, material or price sensitive information, shareholding pattern, change of depository and corporate actions, the listed companies will continue to comply with the applicable requirements of their respective home jurisdictions with respect to corporate governance norms and several other disclosure requirements, without additional regulatory burden,” IFSCA said in a release.