Govt. allows Indian companies to list on foreign exchanges through IFSC

Source: The post is based on the article “Govt. allows Indian companies to list on foreign exchanges through IFSC” published in The Hindu on 5^th August 2023.

What is the news?

The finance minister has said that Indian companies can now directly list their shares on foreign exchanges operating at the International Financial Services Centre (IFSC) in Gujarat’s GIFT City.

This move is aimed at enabling Indian companies to access global capital at better valuations.

FM has also inaugurated the Limited Purpose Clearing Corporation (LPCC) mechanism called AMC Repo Clearing Ltd. (ARCL) and the Corporate Debt Market Development Fund (CDMDF) in Mumbai.

About Limited Purpose Clearing Corporation (LPCC)

The LPCC has been established to facilitate clearing and settling corporate bond repo transactions and promote an active repo market. This initiative aims to enhance liquidity in the corporate bond market.

It will also enable market makers to obtain affordable funding for their inventory, assist bondholders in fulfilling their short-term liquidity requirements without selling their assets, and provide entities with short-term surpluses a secure and efficient way to utilize their funds.

About Corporate Debt Market Development Fund (CDMDF)

During market dislocations, the CDMDF will have access to ₹33,000 crore in capital.

It will use this capital to buy and hold eligible corporate debt securities from participating investors, such as specified debt-oriented MF schemes, and subsequently sell these securities as markets recover. 

Source: The Hindu