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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Greenwave Infra Ltd, an Indian-promoted company, wants to raise funds by issuing bonds denominated in US dollars to investors and have them traded on a stock exchange at GIFT IFSC. Under the IFSCA framework for debt securities, which statement best describes the position?

Greenwave can issue and list its dollar bonds on an IFSC exchange. The IFSCA debt securities framework allows eligible issuers to list debt securities at GIFT IFSC, and the exchanges there deal generally in foreign currency rather than rupees.

  1. ADebt securities may be issued and listed on an IFSC exchange, and are generally denominated in a foreign currencyCorrect
  2. BDebt securities in IFSC can be listed only if denominated in Indian rupees
  3. CDebt securities cannot be listed on IFSC exchanges and must be listed on a domestic stock exchange
  4. DOnly government securities may be listed on exchanges at GIFT IFSC

Explanation

IFSC exchanges operate in foreign currency, and the IFSCA framework for issuance and listing of debt securities permits eligible issuers to issue and list debt securities there. The rupee-only option is wrong because IFSC transactions are generally in foreign currency.

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