1 week ago
GIFT City Plans Direct Listings to Revive Its Equity Market
GIFT City is a financial centre where companies and investors can do business.
Its bond market has grown, but its stock market is still small.
The regulator, IFSCA, wants to make it easier for companies to list their shares there.
Under the proposed plan, companies may not need to hold a traditional IPO first.
Their shares could become available for trading after they are onboarded as listed companies.
The plan is expected to be introduced in the next few months.
GIFT City already handles much borrowing by Indian companies from overseas.
Millions of Indian investors also use its services to invest in global markets.
The regulator hopes direct listings will make GIFT City’s equity market more active.
IFSCA plans to introduce a direct-listing framework at GIFT City in the next few months.
The proposal would let companies list and begin trading without a traditional IPO process.
GIFT IFSC has facilitated nearly $85 billion in bond fundraising, including $18 billion through sustainable bonds.
Nearly 75% of India’s external commercial borrowings reportedly take place through GIFT City.
The framework is intended to attract issuers and deepen GIFT IFSC’s relatively nascent equity market.
- Who
- The International Financial Services Centres Authority, represented by Ramakrishnan, is proposing the framework for companies and investors using GIFT City.
- What
- IFSCA plans to introduce a direct-listing framework that would allow companies to list and trade shares without a conventional IPO.
- Where
- GIFT International Financial Services Centre in GIFT City, India.
- When
- The framework is planned for introduction in the next few months; the comments were made at the Morningstar Investment Conference India 2026.
- Why
- The proposal aims to attract more issuers and develop GIFT IFSC’s relatively nascent equity market.
Key facts
- Proposed change
- Companies could list at GIFT City without following a traditional IPO route.
- Planned timeline
- IFSCA said the framework could be introduced in the next few months.
- Bond fundraising
- Nearly $85 billion has been raised through bonds listed at GIFT IFSC.
- Sustainable bonds
- About $18 billion of the bond fundraising involved green, social and other sustainable bonds.
- External borrowings
- Nearly 75% of India’s external commercial borrowings take place through GIFT City, according to Ramakrishnan.
- Registered entities
- GIFT IFSC had around 1,400 registered entities across 25–30 business lines as of June 2026.
- Global access users
- Nearly 3 million Indians have signed up for GIFT City’s revamped global access programme.
- Remittance limit
- Investors can remit up to $250,000 annually under the Reserve Bank of India’s Liberalised Remittance Scheme.
Quotes
Ramakrishnan
IFSCA official discussing the proposed direct-listing framework at the Morningstar Investment Conference India 2026
“There is no need to come in through a traditional IPO. You are automatically onboarded as a listed company, and your shares become available for trading.”
businesstoday.in
Sources
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