Direct listing of stocks at GIFT City soon, says FM Nirmala Sitharaman

The much-awaited direct listing of stocks at the International Financial Services Centre (IFSC) in GIFT City would happen soon to enable Indian companies to access global funds easily, Finance Minister Nirmala Sitharaman said on Thursday at the 10th Vibrant Gujarat Global Summit. 

“We are going through the process in a very systematic manner and I'm confident it will happen at the earliest,” Sitharaman said. 

Speaking at the seminar ‘GIFT City-An Aspiration of Modern India’, the finance minister said IFSC should shoulder the responsibility of being the gateway to the world in fulfilling the vision for India to become a developed nation by 2047. 

Sitharaman said that IFSC should become the platform for the trade of carbon credit.

“We need to have a greater understanding of how we can handle the carbon and green-related issues.” India, the FM said, has a funding gap of 10.1 trillion US dollars to meet its net zero commitment by 2070. 

Presently, a total of $52.7 billion valued in such securities are listed on the IFSC exchange, including 10.18 billion US dollars in green bonds, social bonds, sustainable bonds, and sustainable sustainability-linked bonds. 

GIFT authorities are also exploring new areas such as blended finance and de-risking mechanisms, and longevity finance which can open up opportunities in wealth management, insurance, pension and medical tourism as well. 

There are now 3 exchanges including the International Bullion Exchange, 25 banks, including 9 foreign banks, 26 aircraft lessors, 80 fund managers, 50 professional service providers and 40 fintech entities in the GIFT City.

Sitharaman said most of the global financial hubs earlier looked at capital only but GIFT City has the distinction of getting financial services infused with technology that can enable cross-border facilitation and tokenisation.

“This fusion today gives us a lead advantage. And that lead advantage is coming when India's growing fastest in the world.” 

Sitharaman said that retail participation in stock markets in India is another distinct feature of the financial sector reforms initiated by the government.

“Because of the local market and economic conditions, our stock markets have survived and flourished. These are comforts which are coming because of stable policy, macro-economic strength of India,” she explained.

She also highlighted that the government has taken a very clear position to strengthen shipbuilding activities in India. “It is a high-risk venture which requires a lot of money …Leasing entities here in GIFT city will be able to access global finance and use capacities of our shipping yards to make India a good manufacturing hub for shipping lines,” Sitharaman said. 

Sitharaman said that the FinTech adoption in India is at the highest rate at 80 to 87 per cent as against the global average of 64 per cent and given the rapidity with which technology is going to influence India's financial inclusion, the gift city should be the place for finance and technology related entrepreneurs. 

“We aim to build here a diverse FinTech laboratory for the world.”

Indian fintech firms aiming to grow their Indian business or wanting to work on a regulatory sandbox through which they can have a proof of concept should be in the GIFT City, she added.