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

Lotus Ventures Pvt Ltd, a company with a high-growth business, wishes to raise equity in GIFT IFSC without meeting the full profitability and track-record criteria of the main board. Which IFSCA route is designed for such a case?

Such a company should use the tailored listing route for emerging or startup-type companies, which relaxes profitability and track-record requirements. Main board listing demands fuller financial criteria, and a private placement without disclosure is not a listing, so those alternatives do not fit the company's objective.

  1. AListing on the main board with a mandatory three-year profit record
  2. BListing through a rights issue only to existing shareholders
  3. CListing under the Innovation/Startup-type platform, with eligibility tailored to emerging companiesCorrect
  4. DPrivate placement without any listing or disclosure

Explanation

IFSCA regulations provide a separate, more flexible listing route for emerging, innovative or startup-type companies that do not meet main board profitability criteria. Main board listing requires fuller track-record tests, and private placement without disclosure does not constitute a listing.

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