India Lowers Public Float Requirement for IFSC Listings

The Indian finance ministry has reduced the minimum public float requirement for companies listing on stock exchanges at the International Financial Services Centre (IFSC) in GIFT City from 25% to 10%. This change aims to attract more companies to list in IFSC, facilitating access to international capital, especially for startups and firms in technology sectors. The updated Securities Contracts (Regulation) Amendment Rules, 2024, will allow Indian companies to list directly on international exchanges while maintaining a minimum public offer of 10% of post-issue capital. Experts suggest that this amendment will encourage both Indian and foreign firms to consider IFSC exchanges due to the favorable regulatory environment. Additionally, the rules stipulate that Indian residents are prohibited from participating in transactions on IFSC exchanges, which are designated for foreign investors and non-resident Indians only.