Moneycontrol
Nov 15, 2017 01:59 PM IST | Source: PTI

Sebi allows multilateral entities to issue securities in IFSC

India's only IFSC has been set up in GIFT City, Gujarat, to enable Indian entities to compete on an equal footing with offshore financial centres.

Markets regulator Sebi has allowed multilateral and statutory organisations abroad to issue securities in the International Financial Services Centre (IFSC) in India.

India's only IFSC has been set up in GIFT City, Gujarat, to enable Indian entities to compete on an equal footing with offshore financial centres.

IFSC is aimed at providing facilities and regulations comparable to other international financial centres in the world.

Amending the definition of issuer, the Securities and Exchange Board of India (Sebi) said in a circular last night that an entity incorporated in a foreign jurisdiction, provided it is permitted to issue securities outside the country of its incorporation, can issue securities.

Besides, multilateral or statutory organisations, having permission to issue securities, can issue them in the IFSC, it said.

Currently, any entity incorporated in India seeking to raise capital in foreign currency and has obtained requisite approval under Foreign Exchange Management Act (FEMA) can issue securities.
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