The government now permits Indian firms to immediately list in the special zone, even if they are not listed elsewhere on any of the domestic markets, in an effort to increase the appeal of GIFT IFSC. When introducing the Corporate Debt Market Development Fund (CDMDF) in Mumbai on Friday, Union Finance Minister Nirmala Sitharaman said that the government has granted the Indian corporations the go-ahead to immediately list on exchanges in the GIFT International Financial Services Centre (IFSC). 

“The government has taken a decision to enable direct listing of listed and unlisted companies on the IFSC exchanges. This is a major step forward and this would provide access to global capital and result in better valuation of the Indian companies,” said the finance minister. 

“It is worth emphasising that the government’s vision for GIFT IFSC transcends much beyond the realm of traditional finance and ventures into the realm of thought leadership,” she added. 

This is significant since the government originally proposed allowing Indian firms to immediately list in foreign jurisdictions in May 2020. The first international financial services centre (IFSC) in India is really a special economic zone (SEZ) that provides various incentives and advantages similar to those of a foreign country. 

The notice permitting Indian businesses to list on GIFT IFSC bourses will be released shortly, according to a senior finance ministry official present at the event, and moving forward, a few overseas jurisdictions will also be added to the list of permitted jurisdictions.

The majority of the major Indian and international financial institutions, as well as both of the national-level stock exchanges—BSE and the National Stock Exchange (NSE)—have a presence in GIFT IFSC. 

Due to the rising popularity of Gift Nifty derivatives, which have been clocking record volumes, GIFT IFSC has recently been in the spotlight. 

Access to Gift Nifty 50, Gift Nifty Bank, Gift Nifty Financial Services, and Gift Nifty IT futures contracts are all available through Gift Nifty. The fact that these contracts are available for approximately 21 hours, which includes US, European, and Asian trading hours, is even more significant

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