Introduction: The International Financial Services Centres Authority (IFSCA) has released a press release seeking suggestions for the review of IFSCA (Issuance and Listing of Securities) Regulations, 2021. These regulations, notified on July 16, 2021, encompass the regulatory framework for the listing of both Indian and foreign companies, SMEs, Start-Ups, SPACs, and various securities. Recent developments, including the Government of India’s decision to permit direct listing on IFSC exchanges, have prompted the IFSCA to open the floor for public and regulated entities to provide their insights and suggestions.
Detailed Analysis: In July 2023, the Union Finance Minister announced the decision to allow direct listing of both unlisted and listed Indian companies on IFSC stock exchanges. Subsequently, a Working Group, chaired by Shri Praveen Trivedi, Executive Director of IFSCA, was formed to delve into the intricacies of this move. The group submitted its report on December 20, 2023, recommending amendments to various frameworks and regulations, including the ILS Regulations.
The Government of India, in response to these recommendations, has notified the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024, and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 on January 24, 2024. These rules provide the necessary framework for the direct listing of equity shares by public Indian companies on international exchanges at the GIFT city.
To gather valuable insights, the IFSCA invites suggestions for the review of ILS Regulations from the public and regulated entities. Suggestions can be submitted via email to Shri Shubham Goyal, Assistant General Manager, and Shri Arjun Prasad, General Manager, with the subject line “Comments for review of IFSCA (Issuance and Listing of Securities) Regulations, 2021,” by February 14, 2024.
Conclusion: As the financial landscape evolves, the IFSCA is actively seeking input to enhance the existing regulatory framework. The opportunity for direct listing on IFSC exchanges marks a significant shift, and stakeholders are encouraged to contribute their suggestions to shape the future of securities listing. This proactive approach ensures that the regulatory environment aligns with the dynamic needs of the financial markets, fostering growth and innovation in the International Financial Services Centres. Participants have until February 14, 2024, to make their voices heard, and the IFSCA anticipates a collaborative effort in refining the Issuance and Listing of Securities Regulations, 2021.
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International Financial Services Centres Authority
PRESS RELEASE
Seeking suggestions for review of IFSCA (Issuance and Listing of Securities) Regulations, 2021
The IFSCA (Issuance and Listing of Securities) Regulations, 2021 (“ILS Regulations”) were notified on July 16, 2021. These regulations, inter-alia, provide the regulatory framework for listing of Indian and foreign companies, listing by SMEs and Start-Ups, listing of Special Purpose Acquisition Companies, listing of Debt Securities, listing of Depository Receipts etc.
2. In July 2023, the Hon’ble Union Finance Minister announced the decision of Government of India to permit direct listing of unlisted and listed Indian companies on the Stock Exchanges in IFSC. Pursuant to the announcement, a Working Group was constituted on “Direct Listing of Listed Indian Companies on IFSC Exchanges” under the chairmanship of Shri Praveen Trivedi, Executive Director, IFSCA with members from Ministry of Corporate Affairs, Department of Economic Affairs, Securities and Exchange Board of India and market participants.
3. The Working Group submitted its report on December 20, 2023. The Working Group has made several recommendations for amendments in various framework and regulations including the ILS Regulations. The report of the Working Group can be accessed here.
4. The Government of India has on January 24, 2024 notified the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024 and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 providing the framework for direct listing of equity shares by public Indian companies on the International Exchanges at GIFT
5. In view of these developments, IFSCA invites suggestions for review of ILS Regulations from public and regulated entities. The suggestions may be sent by email to Shri Shubham Goyal, Assistant General Manager at shubham@ifsca.gov.in with a copy to Shri Arjun Prasad, General Manager at arjun.pd@ifsca.gov.in with subject line “Comments for review of IFSCA (Issuance and Listing of Securities) Regulations, 2021” latest by February 14, 2024.
6. The suggestions should be given in the following format:
| Name and Details of the Person/Entity
(Organisation name (if applicable), Contact No. and Email address) |
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| S. No. | Regulation no./sub regulation no. | Text of the Regulation/ sub Regulation | Suggestion | Detailed Rationale | Other supporting information |
January 24, 2024
Gandhinagar
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