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The Gift City located on the banks of the Sabarmati river in Gujarat .
Stocks of Indian and foreign companies, bonds and other permitted financial products can now be listed on the stock exchanges in the International Financial Services Centre.
The International Financial Services Centre Authority (IFSCA) at the Gujarat International Finance Tec-City, or GIFT City, has notified its regulatory framework allowing the listing of such securities and other financial products. The Gift City is located between Ahmedabad and Gandhinagar.
“Considering that international financial centres act as hubs for fundraising by companies around the world, the new listing regulations have been drafted to position the IFSC as an attractive destination for raising of capital, both through equity and bonds,” IFSCA said in a statement.
Minimum eligibility criteria
To be eligible for this though, a company must have recorded an operating revenue of at least $20 million in the previous financial year or averaged that amount over the previous three financial years. It should also have a pre-tax profit of at least $1 million and a minimum post-issue market capitalisation of $25 million.
IFSCA's regulations call for disclosures such as risk factors, capital structure, and underwriting in the offer document. For a foreign company, the minimum public offer and public shareholding must be 10% of the post-issue capital.
For companies with a proposed share issue size of more than $50 million, the authority may issue its observations on the draft offer document within 21 working days.
After that, the share offer has to be made within 12 months from the date of issue of observations by the authority.
Listing application
Companies listing debt securities will have to file a listing application along with an offer document with the required disclosures.
From next April, issuers shall be required to obtain a credit rating from at least one credit rating agency registered with the IFSCA and obtain an additional credit rating from a globally recognised agency.
On Thursday, the Finance Ministry announced easier listing requirements for Indian companies seeking to list on international exchanges at Gift City's International Financial Service Centre.
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