Startups Can List Directly On GIFT IFSC Exchanges By The End Of 2023: IFSCA chairman

IFSCA, the regulator for GIFT IFSC, is looking to operationalise the framework for direct listing of companies, including startups, on IFSC exchanges.

SUMMARY

K Rajaraman said IFSCA is looking to operationalise the framework for direct listing of companies, including startups, on IFSC exchanges by the end of the year

The necessary amendments for direct listing of Indian companies on GIFT IFSC exchanges would be notified in three months, the IFSCA chairman said

The development comes at a time when the Indian government is aggressively taking actions to promote GIFT as the country’s financial hub

The International Financial Services Centres Authority (IFSCA), the regulator for GIFT IFSC, is looking to operationalise the framework for direct listing of companies, including startups, on IFSC exchanges by the end of the ongoing year, its chairman K Rajaraman said.

Speaking at Global Fintech Fest 2023, Rajaraman said the necessary amendment for this would be notified in the next three months.

Earlier in July, finance minister Nirmala Sitharaman said that the government has allowed Indian companies to list directly on IFSC Exchanges.

“In May 2020, I had said that direct listing of securities by Indian public companies would be permissible in foreign jurisdictions… Now, I am pleased to announce that the government has taken a decision to enable direct listing of listed and unlisted companies on IFSC exchanges,” said Sitharaman.

Meanwhile, Rajaraman also said that the IFSCA would soon come up with payments regulations to facilitate instant settlements, Business Standard reported.

Speaking about the Indian fintech ecosystem, he said the sector has been instrumental in driving financial inclusion.

Commenting on IFSCA’s role in promoting fintech innovations, he said, “In recent years, IFSCA has facilitated startup access and encouraged innovative financial product development, implementing over 30 streamlined global-standard regulations.”

The statements come at a time when the Indian government is aggressively taking steps to promote GIFT as a financial hub. The IFSCA recently also set up a 10-member expert committee on ‘Onshoring Innovations To GIFT IFSC’. The committee has made various recommendations to encourage Indian startups to register in GIFT.

Moving beyond GIFT, Rajaraman praised initiatives like the launch of UPI for the growth of India’s fintech ecosystem.

Earlier on Tuesday, Sitharaman said fintech startups have surpassed traditional banks in terms of the number of UPI payments. She also added that 36% of the lending business market has been taken over by the fintech startups in the country.

According to Inc42’s State Of The Indian Fintech Report Q2 2023, the Indian fintech market is expected to reach a size of $2.1 Tn by 2030, expanding at a CAGR of 18%.