GIFT

  • September 28, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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GIFT

Subject : Economy

Section: Capital Market

In News: MCA, DEA in talks on direct listing rules for start­ups

Key Points: 

  • 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.
economy GIFT