A General view of Gujarat International Finance Tec – City (GIFT), Gandhinagar (file picture)
| Photo Credit:
VIJAY SONEJI
The Finance Minister’s statement that Indian companies will soon be allowed to directly list on overseas exchanges and the GIFT IFSC will come as a relief to domestic start-ups which are struggling to find an exit route for their investors. Inclusion of the Indian offshore financial centre in this facility is especially astute as it can prove to be a catalyst in attracting foreign investors to the centre.
As of now, listed Indian companies can use American Depository Receipts or Global Depository Receipts to make their shares accessible to overseas investors or list debt instruments on overseas exchanges. A handful of companies including Infosys, ICICI Bank and HDFC Bank have used this route, but it’s not available for unlisted start-up companies. While the Companies (Amendment) Bill, 2020, had cleared the decks for allowing direct overseas listing, the…