Listing of Shares in GIFT City – How to List at India INX & NSE IFSC?

Last Updated on: 13th October 2025, 06:44 pm

Introduction to GIFT City: India’s First International Financial Services Centre (IFSC)

What is GIFT City?

GIFT City (Gujarat International Finance Tec-City) is a state-of-the-art smart city located in Gujarat, India. Launched by the Government of India, it is designed to serve as the country’s first International Financial Services Centre (IFSC). The city aims to provide a robust platform for financial services, including banking, asset management, insurance, capital markets, and fintech, while also attracting global investment and facilitating international trade.

GIFT City is strategically positioned as a gateway for global financial services, enabling non-residents to conduct financial transactions in foreign currencies. It offers a competitive tax regime, regulatory flexibility, and world-class infrastructure to support the operations of international businesses and investors.

What is India INX?

India INX (India International Exchange) is the first international exchange to be established in GIFT City, operating under the regulatory framework of the International Financial Services Centres Authority (IFSCA). India INX facilitates trading in a variety of products, such as stocks, derivatives, ETFs, bonds, and commodities, providing an accessible platform for Indian and international investors.

What is NSE IFSC? 

NSE IFSC is the International Financial Services Centre (IFSC) subsidiary of the National Stock Exchange of India, located in Gujarat’s GIFT City. It serves as a platform for Indian investors to access global markets, including trading in Unsponsored Depository Receipts (UDRs) for US-listed companies, and other international derivatives and debt securities. NSE IFSC also has a subsidiary, NSE International Clearing Corporation (NSEICC), which acts as the clearing corporation for trades on the platform

Benefits of Listing Shares at India INX & NSE IFSC:

1. Global Market Access: India INX & NSE IFSC provide companies with access to international investors, increasing visibility and liquidity. They help in attracting foreign investors and non-resident investors.
2. Favorable Tax Regime: Non resident investors investing in shares listed at India INX enjoy tax exemptions, including no securities transaction tax (STT), commodities transaction tax (CTT), and stamp duty. This reduces operational costs significantly.
3. Lower Compliance Barriers: Listing at India INX & NSE IFSC has simplified compliance requirements, with easier processes for non-resident investors and foreign currency trading. For instance, foreign investors are not required to obtain a Permanent Account Number (PAN) under certain conditions.
4. Expanded Trading Hours: India INX offers extended trading hours that overlap with markets in Asia, Europe, and the United States, making it easier for global investors to trade Indian securities.
5. Innovative Financial Products: Investors have access to a range of innovative products under the Global Access Program.

High-Level Statistics on GIFT City’s Growth and Its Impact on Capital Markets

GIFT City has rapidly grown into a leading financial hub, attracting investments, businesses, and financial institutions from across the globe. Below are key statistics highlighting the city’s impact on India’s capital markets:

Metric	Data
Registered Entities	930+
Stock Exchanges	2
Total Capital Raised	USD 65+ billion
Green/ESG Debt Listing	USD 15.43 billion
Banks Registered	72

Key Growth Drivers:

• Infrastructure: GIFT City is equipped with advanced infrastructure, including automated waste collection, district cooling systems, and underground utility tunnels, making it a sustainable and efficient environment for financial services.
• Regulatory Environment: The presence of a unified regulatory body, the IFSCA, has streamlined the regulatory process, providing a stable environment for businesses and investors.
• Global Appeal: GIFT City’s strategic location and robust infrastructure have made it an attractive destination for foreign investors and international firms seeking to capitalize on India’s financial market potential.

GIFT City and Why It’s a Hub for Equity Listing?

Overview of GIFT City: India’s Flagship Smart City for Finance

GIFT City, located between Ahmedabad and Gandhinagar in Gujarat, is India’s first International Financial Services Centre (IFSC). Established by the Government of India, it aims to position India as a global hub for finance, capital markets, asset management, and other financial services. With its world-class infrastructure and regulatory advantages, GIFT City attracts both international and Indian businesses seeking to operate in a dynamic, globalized environment.

The city spans 886 acres of land and has been developed as a “smart city” offering sustainable and efficient infrastructure. GIFT City provides a dedicated space for businesses to operate in an international financial ecosystem, where non-resident investors can trade in foreign currencies.

Key Stats:

• Strategic Location: Positioned along National Highway 48, it is 25 minutes away from Ahmedabad International Airport.
• Year Established: GIFT City was launched in 2007 and began operations as an IFSC in 2015.
• Registered Entities: Over 930+ entities have registered in GIFT City as of December 2023.

Infrastructure & Regulatory Benefits

• World-Class Infrastructure: GIFT City offers advanced systems like district cooling and waste management, alongside cutting-edge business and residential spaces, making it a prime location for financial operations.
• Regulatory Framework: The IFSCA acts as a single unified regulator, streamlining compliance for businesses and simplifying access to global markets.
• Tax Benefits: Companies in GIFT City enjoy exemptions from securities transaction tax (STT), commodities transaction tax (CTT), and stamp duties, alongside other fiscal incentives.

GIFT City as a Global Hub for International Finance

GIFT City is not only a financial center for Indian companies but has rapidly become an international hub for financial services. The city’s strategic location, combined with its attractive regulatory environment, has led to its role as a gateway for global market access.

Fostering Financial Services and Asset Management

GIFT City provides businesses with access to an array of financial services:

• Capital Markets: With the operational India INX and NSE IFSC, GIFT City serves as an international stock exchange, enabling Indian companies to list shares and raise capital through global markets.
• Asset and Wealth Management: The city is home to numerous asset management firms, private equity funds, and venture capitalists that are leveraging GIFT City’s tax incentives and international appeal.

Attracting Global Investors

• Non-Resident Investors: GIFT City’s flexibility allows non-resident Indians (NRIs), foreign portfolio investors (FPIs), and other foreign investors to invest in Indian markets, including through equity listings. The exemption from stamp duty and other transaction taxes makes it highly attractive.
• Financial Products: GIFT City has become a major player in international financial products, such as green bonds, foreign currency debt securities, and Masala Bonds. It also facilitates the trading of ESG-compliant products.

Key Stats on Global Appeal:

• Growth of Registered Entities: Over 930+ entities as of 2025, representing a diverse range of global financial services.
• Trading Volume: GIFT City has seen a significant increase in trading volume, with equity and derivative products being actively traded on India INX and NSE IFSC.
• Commitments Raised: A total of USD 22 billion plus raised through capital markets as of 2025.

Why is GIFT City Crucial for Equity Listings?

GIFT City’s infrastructure, tax advantages, and international market access make it an ideal destination for equity listings. Indian and foreign companies can list their shares on India INX, benefiting from increased visibility, market liquidity, and the potential to tap into international capital.

By choosing to list in GIFT City, companies can leverage the unique global appeal of the city and access international investors looking for innovative, tax-advantageous investment opportunities.

How to List Shares in GIFT City: The Step-by-Step Process

Step 1: Eligibility Criteria

Who Can List Shares in GIFT City?

GIFT City provides an opportunity for both Indian and foreign companies to list shares and raise capital through its stock exchanges, like India INX and NSE IFSC. The eligibility criteria for listing shares in GIFT City are as follows:

• Indian Public Companies: Indian companies that meet the requirements set by the IFSCA (International Financial Services Centres Authority) and SEBI (Securities and Exchange Board of India) can list their shares in GIFT City, especially on India INX.
• Foreign Companies: International companies, particularly those seeking access to the Indian capital market, can list their shares on India INX. This is especially beneficial for foreign companies looking to raise funds in foreign currencies such as USD, EUR, and GBP.
• Private Companies (with conditions): Private companies may also be eligible for listing, but they must meet specific conditions outlined by the IFSCA and SEBI, including prior approval for transitioning from private to public status.

India INX’s & NSE IFSC Role in Providing Listings

India INX (India International Exchange) & NSE IFSC are the premier international exchanges located within GIFT City. They play a crucial role in facilitating listings for both Indian and foreign companies, offering them access to global capital markets. The exchange provides a platform for equity listings, derivatives trading, and a variety of other financial products, such as bonds, commodities, and debt securities.

• Equity Listings: Companies can list their shares on India INX to access global liquidity and reach a broader investor base.
• Foreign Currency Trading: India INX allows companies to list and trade shares in foreign currencies, which appeals to international investors, especially Non-Resident Indians (NRIs) and Foreign Portfolio Investors (FPIs).

Direct Listing Without Prior IPO

GIFT City facilitates direct listings for companies, meaning they can list shares without needing to go through the traditional Initial Public Offering (IPO) process. This route is particularly beneficial for companies that do not need to raise new capital but wish to access liquidity or broaden their shareholder base.

• Direct Listing Advantages:
  • Cost Savings: Direct listings eliminate the need for underwriting fees and other IPO-related costs.
  • Faster Market Access: Companies can enter the market quickly, without the delays typically associated with IPO processes.
  • Global Investor Base: Companies can list in foreign currencies and attract investors globally, offering a more diversified pool of investors.

This process enables companies to gain market visibility and liquidity without the lengthy and expensive IPO process, making it a highly efficient route for many companies.

Step 2: Regulatory Framework and Approvals

Key Regulatory Authorities

The listing process in GIFT City is governed by several regulatory bodies, which ensures a streamlined process for businesses while adhering to international standards.

• IFSCA (International Financial Services Centres Authority): The IFSCA is the principal regulatory body overseeing all financial activities in GIFT City. It provides a unified framework for the regulation of financial markets, making it easier for companies to operate within the city’s financial ecosystem.
• SEBI (Securities and Exchange Board of India): SEBI regulates the securities market in India, including listing and trading requirements for companies listed on India INX and NSE IFSC. It provides oversight to ensure compliance with market norms, protecting both companies and investors.
• Ministry of Finance: The Ministry of Finance plays a crucial role in policy formation and ensuring that GIFT City aligns with national economic goals, including fiscal regulations and compliance with international standards.

Filing Requirements for Listing

Before a company can list its shares on India INX, certain filing requirements must be met. These include:

• Application to IFSCA: Companies must submit a detailed application to the IFSCA, including:
  • Financial statements for the past few years.
  • Business and corporate governance documents.
  • Risk management and compliance plans.
• Disclosure Documents: Companies need to disclose all relevant information about their business activities, financial health, and regulatory compliance to ensure transparency and protect investors.

Step 3: Direct Listing Process

Direct Listing on India INX, NSE IFSC and Other Stock Exchanges

The direct listing process on India INX involves several critical steps:

1. Preparation and Documentation:
   • Companies need to prepare all necessary documents, including financial statements, business plans, and corporate governance structures.
   • A prospectus must be created detailing the company’s performance and future outlook.
2. Application Submission:
   • Submit the listing application to IFSCA along with all required documents.
   • IFSCA will review the application for compliance with its guidelines and regulatory standards.
3. Approval from IFSCA Authority:
   • Once the application is reviewed, IFSCA will issue a formal approval for the listing.

4. Listing and Trading:
   • After obtaining approval, the company’s shares will be officially listed on India INX, and they can begin trading on the exchange.
   • Companies can opt to list in foreign currencies such as USD, EUR, or other globally recognized currencies.
5. Post-Listing Compliance:
   • Companies must comply with ongoing regulatory requirements, including regular financial disclosures, corporate governance practices, and tax filings as per IFSCA and SEBI guidelines.

Benefits and Challenges for Indian Companies Opting for Direct Listing

Benefits:

• Cost Efficiency: Direct listings eliminate underwriting fees, saving companies money.
• Global Reach: By listing on India INX, companies tap into a broader, global investor base, especially non-resident investors.
• Faster Liquidity: Direct listings allow quicker access to capital and liquidity without the waiting period associated with traditional IPOs.

Challenges:

• Limited Initial Investor Awareness: Without the publicity and marketing efforts of an IPO, a direct listing may struggle with initial investor interest.
• Liquidity Concerns: Despite the growing popularity of GIFT City, liquidity may still be lower compared to more established stock exchanges like the NYSE or LSE.

Advantages for Non-Resident Investors and Foreign Currencies

A key advantage of listing shares in GIFT City is the ability to trade in foreign currencies. This attracts international investors who prefer to invest in USD, GBP, and other major currencies, rather than dealing in Indian Rupees (INR). Non-resident investors (NRIs) and Foreign Portfolio Investors (FPIs) can also participate in the equity listing process with reduced compliance compared to domestic listings. They are not required to obtain a PAN or file tax returns if they meet the specified criteria

Understanding the Direct Listing Scheme in GIFT City

The Direct Listing Scheme introduced by the Indian government enables Indian public companies to list their equity shares directly on international stock exchanges. This scheme begins with the India INX and NSE IFSC exchanges in GIFT City, India’s first International Financial Services Centre (IFSC). By allowing companies to list without first having to go through a domestic listing process, this initiative provides Indian companies with a valuable opportunity to raise foreign capital, attract international investors, and expand their market reach.

Key Highlights of the Direct Listing of Securities:

• No Need for Prior Indian Listing: Companies can list directly on international exchanges without listing in India first.
• Aims to Boost Foreign Capital: This scheme is designed to help Indian companies increase their valuations, expand global access, and attract foreign investment.
• Regulated Framework: The scheme is governed by several regulations, including Section 23(3) of the Companies Act, 2013 and Schedule XI of FEMA (Non-Debt Instruments) Rules, 2019.

Who is Eligible for the Direct Listing Scheme?

The Direct Listing Scheme is currently available only to unlisted public companies in India. This opens up new avenues for those companies that have not yet gone public in India but wish to access global markets.

Ineligible Companies:

• Companies that are willful defaulters, under investigation, or in default on public deposits or loans.
• Section 8 or Nidhi companies are also excluded.

Private companies are not eligible for this scheme. This ensures that only companies with a clean financial history and a solid market reputation are allowed to list under this initiative.

Approved International Exchanges for Direct Listing

Currently, GIFT City IFSC houses the only exchanges authorized for direct listings in India:

1. India INX: A subsidiary of the Bombay Stock Exchange (BSE), it provides a platform for both Indian and foreign companies to list their shares.
2. NSE IFSC: A subsidiary of the National Stock Exchange, NSE IFSC offers a similar platform for companies seeking to list in GIFT City.

Both exchanges are regulated by the IFSCA (International Financial Services Centres Authority) to ensure global standards of financial operations

Compliance Requirements for Listing

For companies wishing to list under the Direct Listing Scheme, several compliance requirements must be met:

• FEMA Compliance: Companies must comply with FEMA (Foreign Exchange Management Act) rules related to non-debt instruments.
• Companies Listing Rules, 2024: Companies must follow these rules that govern the listing process and procedures for companies.
• IFSCA Regulations, 2021: These regulations specify how securities should be issued and listed on exchanges in GIFT City IFSC.
• MCA e-Form LEAP-1: This form must be filed within 7 days of submitting the prospectus to the exchange.

Additionally, companies must comply with SEBI regulations, the Companies Act, and PMLA (Prevention of Money Laundering Act).

Who Can Invest in Shares Listed under the Scheme?

The Direct Listing Scheme allows non-resident investors to participate in the listed shares. Eligible investors include:

• Non-Resident Indians (NRIs)
• Foreign Institutional Investors (FIIs)
• Foreign companies and individuals

However, Indian residents and Indian mutual funds are not permitted to invest under this scheme. Entities from land-bordering countries must seek prior approval from the Government of India before participating in the investment process.

Can Existing Shareholders Offer Shares for Sale?

Yes, under the Direct Listing Scheme, existing shareholders are allowed to sell their shares as part of an Offer for Sale (OFS) during the listing process. This provides a liquidity option for original investors who wish to exit or reduce their stake

Does This Count as Foreign Investment?

Investments made through the Direct Listing Scheme are categorized as Foreign Direct Investment (FDI). As such, these investments are subject to the FDI sectoral caps and must adhere to the regulations that govern foreign investments in India. Companies must ensure that they do not venture into sectors where FDI is restricted or prohibited

Dual Listings: Is Domestic Listing Required?

No, a domestic listing is not required for companies to list on India INX or NSE IFSC under the Direct Listing Scheme. Companies can choose to list exclusively on the international exchanges within GIFT City IFSC. However, companies have the option to pursue dual listings later if they wish to list their shares both domestically and internationally

Incentives for Investors

Investors who engage in GIFT City-based listings benefit from several key incentives:

• No Capital Gains Tax: Foreign investors are exempt from capital gains tax when selling shares listed in GIFT City.
• Forex-Denominated Trades: Investors can trade in foreign currencies (USD, EUR, etc.), avoiding currency risks.
• Extended Trading Hours: With 20+ hours of daily trading, GIFT City exchanges allow for seamless trading across multiple time zones.
• Globally Aligned Standards: The exchanges maintain global standards for listing and disclosure, ensuring transparency and trust.
• Regulatory Certainty: The IFSCA ensures a clear and stable regulatory environment, boosting investor confidence.

Who Regulates the Direct Listing Framework?

The International Financial Services Centres Authority (IFSCA) is the primary regulator overseeing the Direct Listing Scheme in GIFT City IFSC. The IFSCA combines the powers of several key Indian financial regulators to ensure comprehensive oversight:

• RBI: Reserve Bank of India
• SEBI: Securities and Exchange Board of India
• IRDAI: Insurance Regulatory and Development Authority of India
• PFRDA: Pension Fund Regulatory and Development Authority

This unified regulatory framework provides a seamless experience for companies and investors alike, ensuring that global standards are upheld.

Infrastructure in GIFT City for Direct Listing

GIFT City is equipped with cutting-edge infrastructure to support the listing and trading of securities, including:

• Stock Exchanges: India INX and NSE IFSC facilitate the listing of shares and other securities.
• Clearing Corporations: India International Clearing Corp (IFSC) and NSE IFSC Clearing Corp handle the settlement of transactions.
• Depository: India International Depository IFSC Ltd ensures secure holding and transfer of securities.
• Banking Network: A comprehensive network of Indian and international banks is operational in GIFT City, offering seamless financial services to businesses.

Equity Listing in GIFT City: Benefits and Challenges

Benefits

• Access to Global Capital: Allows companies to raise funds in foreign currencies (USD, EUR, GBP) from a wider pool of international investors, including FPIs and NRIs, increasing global visibility.
• Lower Operational Costs: Offers cost savings through tax exemptions (no STT, CTT, or stamp duty) and reduced compliance costs due to a simpler regulatory framework.
• Tax Exemptions and Fiscal Advantages: Key incentives include no capital gains tax for investors and the ability to trade in foreign-denominated currencies, mitigating currency risk.

Challenges

• Regulatory Hurdles: Companies must navigate complex regulations and obtain approvals from multiple bodies (IFSCA, SEBI, SEZ), and deal with cross-border regulatory frameworks.
• Market Liquidity Concerns: Liquidity may be lower compared to established global exchanges (NYSE, LSE), which could challenge companies in gaining initial investor traction and concern investors about exit strategies.
• Cross-Border Taxation: Companies must understand and comply with complex international tax treaties and the Foreign Exchange Management Act (FEMA), adding complexity to tax compliance and foreign investment caps.

IPO Listing in GIFT City: A Special Focus

The GIFT City platform offers a competitive and regulatory-friendly environment for companies looking to list their Initial Public Offerings (IPOs), with access to international investors and numerous benefits.

How IPO Listings Are Conducted in GIFT City

The process of IPO listing in GIFT City is highly structured and designed to provide seamless access to capital markets for companies looking to raise funds. Here’s a breakdown of the IPO listing process and key steps involved:

1. Eligibility and Application
   • Companies must meet certain criteria, including financial performance, governance standards, and compliance with SEZ and IFSCA regulations.
   • An application is submitted to the International Financial Services Centre Authority (IFSCA) for approval, along with financial disclosures and other required documentation.
2. Approval and Regulatory Review
   • IFSCA and SEZ authorities review the application to ensure compliance with international standards.
   • Approval is granted once the regulatory checks are complete, and the company is cleared for listing.
3. Listing on India INX
   • Once approved, companies list their shares on India INX, which offers the fastest trading platform in the country.
   • Trading begins, and the company gains access to a global pool of investors.
4. Post-Listing Compliance
   • Companies must comply with continuous reporting requirements to maintain their listing status. This includes quarterly financial disclosures and adherence to corporate governance practices.

IPO Process Timeline in GIFT City

Step	Duration	Description
Eligibility & Application	1-2 months	Application submission with necessary documents
Approval & Regulatory Review	1-3 months	IFSCA and SEZ authorities review the application
Listing on India INX	1-2 months	Approval granted, shares are listed and traded
Post-Listing Compliance	Ongoing	Quarterly reports and adherence to governance

Recent Trends and Success Stories

Several high-profile IPOs launched via India INX and NSE IFSC have captured the attention of both domestic and international investors. Here’s a look at some notable IPO trends and success stories in the region:

Success Story: Nifty Futures Listing

One of the key highlights of GIFT City’s success is the listing of Nifty Futures on India INX. The introduction of Nifty Futures as a high-volume product has significantly increased liquidity and trading activity on India INX, positioning the exchange as a key player in the global derivatives market.

Other High-Volume Products

GIFT City has also seen successful listings of several other high-volume financial products, including bonds, ETFs, and structured financial instruments. These products have helped attract significant institutional interest, further solidifying GIFT City’s reputation as a preferred listing destination for companies.

Taxation, Compliance, and Regulatory Advantages for Listing on GIFT City

GIFT City, India’s International Financial Services Centre (IFSC), provides multiple regulatory and financial benefits for companies listing on exchanges like India INX.

Tax Benefits for Non-Residents

• Exemption from Capital Gains Tax: Non-resident investors are exempt from capital gains tax on foreign-listed securities.
• No Withholding Tax: There’s no withholding tax on dividends or interest income for foreign investors, enhancing returns.
  

Transaction Taxes

• No Securities Transaction Tax (STT): Transactions in GIFT City exchanges are free from STT, unlike traditional Indian exchanges.
• No Commodities Transaction Tax (CTT): Investors avoid the CTT, a significant saving in trading costs.
• No Stamp Duty: Transactions within GIFT City are not subject to stamp duties, reducing overall transaction costs.

Compliance Ease

• Simplified KYC: Non-residents can complete a simplified KYC process, easing the compliance burden.
• No PAN Requirement: Non-resident investors do not need a PAN to transact, simplifying investment procedures.

Future of Equity Listings in GIFT City and India INX

Upcoming Regulations

GIFT City’s regulatory framework is evolving to streamline the listing process and protect investors, with potential changes in cross-border trading and investor protections.

Growing Popularity Among Foreign Investors

Foreign investors are increasingly flocking to GIFT City due to its tax incentives, ease of compliance, and access to global capital markets, boosting liquidity and diversifying investment products.

Emerging Trends: Remote Broker-Dealers

The rise of remote broker-dealers is expanding GIFT City’s global reach, making it easier for international investors to trade in Indian markets through automated systems and seamless cross-border operations.

In conclusion, GIFT City has firmly established itself as India’s premier International Financial Services Centre (IFSC), providing a transformative platform for equity listings through its state-of-the-art exchanges, India INX and NSE IFSC. By offering unparalleled access to global capital, a highly favorable tax regime with exemptions on capital gains for non-residents and transaction taxes like STT, and a simplified regulatory environment under the unified IFSCA, it presents a powerful alternative to traditional financial hubs. The innovative Direct Listing Scheme is a game-changer, enabling unlisted Indian public companies to efficiently tap into international markets, raise funds in foreign currencies, and attract a diverse base of foreign investors. This strategic combination of world-class infrastructure, significant cost advantages, and streamlined compliance makes GIFT City a vital and rapidly growing gateway for companies seeking global visibility and for investors targeting India’s dynamic market.