look news india
New Delhi: The Finance Ministry today issued a notification reducing the minimum required public shareholding for companies to be listed on the stock exchange in GIFT City from the current 25 per cent to 10 per cent. Experts say lowering the minimum limit will make it easier for Indian companies to access global capital. They said it is a step towards strengthening India's position in the global financial market.
The Securities Contract Regulation Rules, 1956 have been amended by a notification issued by the Department of Economic Affairs. This amendment simplifies the listing requirements for Indian companies wishing to list on international exchanges in line with global standards under the International Financial Services Centres.
The Department of Economic Affairs said in a statement that amending the Securities Contract Regulation Rules by reducing these limits will ensure easy access to global capital for companies and startups in the fast-growing technology sector. This will especially benefit Indian companies that want to fly global and expand their presence in other markets.
The government notified rules in January to enable companies to list on the GIFT-IFSC. The International Financial Services Centres Authority sought views in a consultation paper issued in May on additional regulatory requirements.
This is a welcome move. It aims to ease the listing requirements of Indian companies on international exchanges under GIFT-IFSC. Knowledgeable circles said that this is an important amendment which reduces the mandatory minimum public shareholding requirement for listing from 25 percent to 10 percent. Apart from this, foreign investors will be encouraged to invest in India so that they can strengthen their position. This will increase the flow of foreign currency into the country.
The reduction in public share will reduce the number of shares available to the general public. There can be many impacts on the shares. To facilitate listing, IFSC will soon release the final norms for eligibility criteria, disclosure criteria, net worth requirements, accounting norms, etc. The final norms will be made in line with global standards. In which they will also comply with the disclosure and listing norms of market regulator SEBI and the requirements of issuers.
