- September 28, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Subject : Economy
Section: Capital Market
In News: MCA, DEA in talks on direct listing rules for startups
- Corporate Affairs Ministry (MCA) is in talks with the Department of Economic Affairs (DEA) in the Finance Ministry to frame rules for enabling the direct listing of Indian companies, including startups, on overseas exchanges at the GIFT City in Gujarat.
- GIFT City is the country’s sole International Financial Services Centre (IFSC).
- Government is currently focused on enabling direct listing of Indian companies in GIFT City before looking at allowing them to list directly overseas.
- This would enable startups and companies of like nature to access the global market through GIFT IFSC.
- Currently, Indian companies can access overseas equity markets only through depository receipts or by listing their debt securities on foreign markets.
- The Centre had in 2020 amended the Companies Act allowing the direct listing of Indian companies on foreign stock exchanges, but the necessary framework has not been put in place so far.