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GIFT IFSC prescribes a framework for listing of Depository Receipts
New Delhi, October 30, 2020
The International Financial Services Centres Authority (IFSCA) has prescribed the regulatory framework for listing of Depository Receipts (DRs) to develop financial products and financial services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC).
The framework provides for the listing of DRs by companies that are listed in FATF compliant jurisdictions (including India), an official press release said.
The framework enables the eligible listed companies to raise capital through issuance and listing of DRs on the stock exchanges in GIFT IFSC.
Additionally, the framework enables eligible companies having DRs listed on any exchange in a FATF compliant jurisdiction to list and trade such DRs on the stock exchange(s) in GIFT IFSC as an additional venue for trading, without any fresh public offering.
While IFSCA has prescribed the framework for essential disclosure requirements such as financial statements, material or price-sensitive information, shareholding pattern, change of depository and corporate actions, the listed companies will continue to comply with the applicable requirements of their respective home jurisdictions concerning corporate governance norms and several other disclosure requirements, without additional regulatory burden.
The listed companies will be required to release all the disclosures made in the home jurisdiction to the stock exchange(s) in GIFT IFSC, the release added.