INSUBCONTINENT EXCLUSIVE:
will demonstrate a new fundraising avenue for firms.The NSE IX exchange, situated in the financial hub of Gujarat International Finance
Tec-City, or GIFT City, is initially targeting unlisted companies for the debut, chief executive officer V
Balasubramaniam said in an interview
These may be Indian firms with foreign holdings or even Silicon Valley or Delaware-based entities, he said, without providing any names.GIFT
City is an initiative of Prime Minister Narendra Modi aimed at positioning India as a global financial hub to rival Dubai or Hong Kong
The zone offers exemptions from certain taxes and regulatory restrictions, making it a more attractive for international capital raising.A
number of Chinese companies have gone ahead with international listings in Hong Kong, and some of them have now become global
multinationals, Balasubramaniam said
alternative to domestic exchanges
A foreign-currency listing in GIFT City may also benefit Indian firms looking to expand globally by reducing currency conversion and hedging
that is already listed can decide to do a follow-on public offering in GIFT City as a separate dollar float, or it could do an offer for
Firms in the nation raised more than $20 billion via initial share sales last year.The absence of securities transaction and capital gains
taxes in GIFT City is another major incentive for foreign investors, Balasubramaniam said.
