Listing on an IFSC Exchange- Legal and Tax Considerations

Over the past five years, GIFT-IFSC has evolved from a nascent offshore financial centre into a multi-asset international hub through steady regulatory, infrastructural, and market development. Key milestones include the operationalization and empowerment of the International Financial Services Centres Authority (IFSCA) as a unified regulator; rollout of a modern, principle-based framework for banking units, insurance, aircraft and ship leasing, capital markets, bullion trading, fintech sandboxes, and cross-border fund management; creation of the India International Bullion Exchange and enabling of direct listing of Indian companies on IFSC exchanges; tax incentives and streamlined company formation and dispute resolution (including arbitration/mediation) to attract global participants; expansion of fund structures (including FPIs, AIFs, family investment funds), captive and global in-house centres, and fintech innovation via regulatory sandboxes; and continued physical and digital infrastructure upgrades. These steps have increased the number of licensed entities, product depth, and international deal flow, positioning GIFT-IFSC as India’s gateway for cross-border finance and a competitive alternative to established global financial centres.

One of the most exciting developments that has emanated from GIFT-IFSC is the development of the two international exchanges set up by BSE and NSE. Though both these exchanges kicked off with listings of debt instruments, equity listings are now on the horizon. The attached note (i) discusses the legal and tax considerations relating to listing on an IFSC Exchange, (ii) compares the key thresholds for a domestic listing with a GIFT City listing and (iii) sets out the relevant tax implications for non-residents investing in an IPO in GIFT IFSC.

Read the detailed update here