Sebi allows multilateral entities to issue securities in IFSC
New Delhi: Markets regulator Securities and Exchange Board of India (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, Sebi said in a circular Tuesday 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.