The International Financial Services Centres Authority (IFSCA) has issued a consultation paper proposing a framework that would let eligible companies directly list their equity shares on stock exchanges in GIFT City without following an initial public offering (IPO) route. The proposed alternative is designed for firms that have already raised capital from founders, institutional investors, or other sources, and do not need immediate fresh funding. If adopted, direct listing would aim to improve visibility and corporate governance and create liquidity options for existing shareholders.
Under the draft rules, companies not already listed in India or overseas would qualify if they meet at least one of three financial thresholds: minimum operating revenue of $20 million, pre-tax profit of $1 million, or a post-listing market capitalisation of $50 million. The framework also contemplates the use of superior voting rights shares, subject to shareholder approval and a holding period of at least three months before the listing application.
IFSCA proposes a streamlined process that includes in-principle approval from a recognised stock exchange within 15 days, followed by submission of an information document reviewed with the involvement of a registered investment banker. The document would include risk factors, capital structure, financial statements, disputes, related-party transactions, and management details. Financial statements would need to cover at least three years under specified accounting standards and must be no more than six months old at filing. The draft also sets public shareholding expectations—domestic rules for Indian companies and at least 10% for foreign issuers—along with requirements related to valuation and initial price discovery.
