FX GIFT IFSC: The Government of India has given a good gift to the companies of the country. Indian companies will now be able to list themselves directly in the Foreign Currency Exchange and GIFT (Gujarat International Finance Tec-City) IFSC (International Financial Services Center).
Due to this the companies of the country will be able to trade 21 hours in 8 countries. Finance Minister Nirmala Sitharaman gave this information on Friday.
Finance Minister Nirmala Sitharaman said during the launch of the Corporate Debt Market Development Fund in Mumbai, 'The government has given the final approval for Indian companies to be listed directly on the exchanges in GIFT IFSC.'
Finance Minister Nirmala Sitharaman said that after this decision, the valuation of Indian companies will be much better and we will also have direct access to global capital. With this decision, the vision of the government is to be taken far beyond finance and venture.
About 8 foreign jurisdictions will be added to this approval list. The government had initially talked about overseas listing in 7 countries including UK, Switzerland, Canada and the US.
In May 2020, companies were given approval for direct listing, but its legal provisions are yet to come. SEBI has also suggested a framework for direct listing.
Both BSE (Stock Exchanges of India - Bombay Stock Exchange) and NSE (National Stock Exchange) are already linked to GIFT IFSC. After the listing permission, many more Indian companies will be listed here.
GIFT Nifty 50, GIFT Nifty Financial Services, GIFT Nifty Bank and GIFT Nifty IT derivative contracts get 21 hours access to trade.
This decision of the government will increase the confidence of people investing in mutual funds and corporate market.
