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Finance Minister Nirmala Sitharaman has said that domestic companies can now go in for direct listing on foreign exchanges and the International Financial Services Centre (IFSC) in Ahmedabad. The provisions for direct overseas listing were approved by the government, as part of the Covid relief package announced in May 2020, but the rules in this regard are yet to be notified. The direct overseas listing will allow Indian companies to access foreign funds on various exchanges overseas.

The minister said the government has taken a decision to enable the direct listing of listed and unlisted companies on the IFSC exchanges. So, this is a major step forward. This will facilitate access to global capital and better valuation.

The facility will act as a backstop facility for specified debt funds during periods of stress in debt markets, and this was announced by Sebi last month. Its function will involve purchasing investment-grade corporate debt securities when debt markets face a crisis. The move is liely to bolster the confidence of mutual funds and investors in the corporate debt markets while also improving secondary market liquidity in corporate debt securities. SBI Funds Management will serve as the investment manager of the CDMDF.