Public Float Requirement Reduced To 10% For Listings At Gandhinagar's IFSC
Continuous listing requirements have also been set at 10%, in line with the amended Securities Contracts Regulation Rules.
The Finance Ministry has lowered the minimum public float requirement for companies listing on stock exchanges at the International Financial Services Centre in Gandhinagar to 10%, down from 25%. The move is aimed at encouraging more companies to list in India's first IFSC, which is located within the Gujarat International Finance Tec City and operates under the Special Economic Zone Act, 2005.
The Department of Economic Affairs has amended the Securities Contracts Regulation Rules, 1956, easing listing requirements for Indian companies looking to go public on international exchanges within IFSCs, aligning them with global standards, according to an official statement.
This change supports the Direct Listing of Equity Shares Scheme under the Foreign Exchange Management (Non-Debt Instruments) Regulations, 2019, and the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024. Together, these provide a regulatory framework enabling Indian companies to issue and list their shares on international stock exchanges at GIFT-IFSC.
The updated rules state that for Indian companies listing solely on international exchanges in IFSCs, the minimum public offer and allotment will now be 10% of post-issue capital. Continuous listing requirements have also been set at 10%, in line with the amended Securities Contracts Regulation Rules.
This reduction in thresholds is designed to improve access to global capital markets, particularly benefiting Indian startups and technology companies with global aspirations, the statement said. The initiative reflects the government's commitment to creating a competitive, world-class regulatory and business environment in IFSCs, enhancing India's standing in the global financial system.
Commenting on the development, Nangia Andersen India Director (regulatory) Mayank Arora said the amendment has been brought about to encourage Indian and foreign companies to list their securities on stock exchanges located in IFSC, mandating a lower dilution of ownership.
"While companies consider multiple factors such as liquidity, cost of listing, regulatory environment, etc., this amendment would certainly nudge companies (both foreign and domestic) to explore the option of listing on stock exchanges located in IFSCs," he said.
Reserve Bank Governor Shaktikanta Das recently announced that trading of sovereign green bonds could begin at the IFSC in Gujarat during the second half of the current fiscal year. This follows the RBI's April announcement that it would establish a framework to facilitate trading of these bonds in GIFT City.
The government began raising funds through green bonds in 2022-23 and has successfully accumulated Rs 36,000 crore over the past two years. However, during the current financial year, only Rs 1,697 crore has been raised out of the planned Rs 12,000 crore target for the first half, which ends in September, due to unfavorable bids.
The development underscores ongoing efforts to expand India's green finance market through strategic initiatives at GIFT City, supporting the nation's broader climate goals.
(With inputs from PTI)
