Unlisted Indian firms can directly list abroad: What's the impact
Unlisted public Indian companies can now list directly on international exchanges at GIFT City, thanks to permission under the International Financial Services Centres Authority (Listing) Regulations, 2024 dated 20 August 2024, while listed firms still require SEBI's operational guidelines, which are pending.
No need for a domestic listing or raising new capital—this move makes it easier for homegrown firms to access global investors.
XED to be 1st company listed on GIFT City exchange
XED, an executive education provider, is set to become the first company to go public on GIFT City's exchanges, with plans to raise $12 million through a dollar-based offering this month.
This marks a big shift, giving Indian startups and businesses more fundraising options beyond traditional stock markets.
Key compliance requirements for unlisted firms
To get listed, unlisted public Indian companies must file their prospectus via e-Form LEAP-1 within seven days of submitting it to the exchange, among other compliance requirements.
These listings are treated as Foreign Direct Investment (FDI) and must follow existing sectoral caps and regulations.
Benefits of direct listings and what's next
Direct listings cut out underwriting costs and lengthy roadshows—plus they generally do not impose the same lock-in restrictions that apply in an IPO, so shares can often be traded right away.
Companies also get access to international investors and foreign currency funding.
SEBI is working on more detailed rules to help listed firms make the most of these changes.