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

Kaveri Infra Ltd, a company incorporated in India and already listed on a recognised domestic stock exchange, wishes to also list its equity shares on an IFSC exchange without raising fresh capital. Which statement best reflects the route available?

An Indian company can seek direct listing of its equity shares on an IFSC exchange, subject to the applicable eligibility conditions and approvals. It need not delist domestically, form a foreign subsidiary, or confine itself to depository receipts, because direct equity listing is now permitted.

  1. AIt can list only if it first delists from the domestic exchange
  2. BIt can seek direct listing of its equity shares on an IFSC exchange, as Indian companies are permitted such listing in the IFSC, subject to meeting the eligibility and approvals applicableCorrect
  3. CIt must incorporate a foreign subsidiary, as Indian companies cannot list in IFSC
  4. DIt can list only through depository receipts, with no direct equity listing allowed

Explanation

Indian companies are permitted to list equity shares directly on IFSC exchanges, subject to applicable eligibility and approvals. Delisting is not required, and the depository receipt route is only one of the options, not the sole one.

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