To facilitate easier access to global capital for Indian start-ups and firms in the sunrise and technology sectors, the Centre has reduced the mandatory public float threshold to 10% from 25% for companies to be listed in the International Financial Service Centres (IFSCs). The immediate beneficiary would be the Gift City in Gujarat.
“This will particularly benefit Indian companies going global and having ambitions to look at opportunities for expanding their presence in other markets,” the finance ministry said in a statement.
While the lower threshold will encourage more entities to list themselves on the IFSCs, analysts said small floats could be prone to share price manipulations. “While companies consider multiple factors such as liquidity, cost of listing, regulatory environment, etc. this amendment would certainly nudge Companies (both foreign and domestic) to explore the option of listing on stock exchanges located in IFSCs,” said Mayank Arora, Director- Regulatory, Nangia Andersen India.
A smaller float enables firms to retain control of their companies while attracting public foreign capital, said Mohit Chaudhary, Managing Partner Kings & Alliance LLP.
“On negative side a reduction in public float would render smaller number of shares available to the public, which can have a number of implications for a stock, including: Volatility, where smaller float stocks are more volatile as even a single trade would cause greater impact on the price,” Chaudhary said.
Institutional investors, insurance companies, mutual funds, pension funds avoid trading in companies with smaller floats, he said. Similarly, smaller float can be more vulnerable to pump-and-dump schemes because of their susceptibility to price manipulation.
The market considers companies with higher float shares to have better governance standards since the promoter has lesser influence and other shareholders have more power to exercise their rights.Come from Sports betting site VPbet
Also Read
Mutibagger PSUs REC, PFC rise 2% after UBS initiates coverage with ‘Buy’
The ministry of finance has amended the Securities Contracts Regulation Rules (SCRR), 1956 in to ease the listing requirements of bourses in IFSCs, which are deemed foreign jurisdictions. As per the amendment, companies desiring to list their securities solely on a recognized stock exchange in an IFSC are required to always maintain at least 10% public shareholding. The threshold is 25% for companies listed in the domestic stock exchanges (non-IFSC).
‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’ under the Foreign Exchange Management (Non-Debt Instruments), 2019 and Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 together, provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international stock exchanges at the Gift City.Come from Sports betting site
Related Posts
By admin • January 13, 2025 • Oil prices rose nearly $1 on Wednesday as markets focused on supply tightness heading into winter and a “soft landing” for the U.S. economy.
Brent crude futures rose 86 cents, or 0.9%, to $94.82 a barrel by 0340 GMT, while U.S. West Texas Intermediate crude futures climbed 86 cents, or 0.9%, to $91.25.
Industry data released on Tuesday showed U.S. crude oil stockpiles rose last week by about 1.6 million barrels, against analysts’ expectations for a drop of about 300,000 barrels.
Senior Citizen Fixed Deposits offering up to 9.5% in Aug – Check latest interest rates after the recent hikes Will Nifty fall on Monday as Hindenburg levels allegations on SEBI Chair? See GIFT Nifty, FII data, F&O, crude, and more before market opens Paris Ol…
By admin • January 2, 2025 • The broader market indices have significantly outperformed the benchmarks over the last four years, driven by persistent inflows from domestic investors. Pranav Haridasan, managing director and chief executive officer at Axis Securities, tells Vivek Kumar M in an interview that large-caps may see a catch-up rally in the near term, given the valuation differential. However, he believes more themes and pockets of growth may emerge from mid-cap and small-cap space in the longer term. Excerpts:
Elections have just been concluded. What did you make of the volatility and concerns around policy continuity?
Despite the short-term volatility spike we witnessed last week, we believe not much has changed from the ‘growth outlook’ perspective…
By admin • December 27, 2024 • Hedge funds are piling into the euro zone’s $10 trillion government bond market, scenting opportunities as funding needs surge and the European Central Bank retreats. The funds are buying a large share of government debt sales, providing a source of much-needed capital, traders and officials sayCome from Sports betting site. Yet the lightly-regulated investors often load their bets with bank debt, tying their fortunes to lenders, at a time when there is growing regulatory concern globally about their market impact.
Interviews with more than a dozen sources, including senior traders and treasury officials, as well as market data compiled exclusively for Reuters by electronic platform Tradeweb, …
By admin • December 26, 2024 • The Luau takes place on Summer 11 every year in Stardew Valley, with the main event being the community potluck soup. You need to add an ingredient to the soup, which will have a drastic effect on the outcome of the Luau, depending on what you add to it. Of course, you can cause the soup to taste bad by adding a bad ingredient as well. Here’s what you should know about the Stardew Valey Luau.
The Luau potluck soup
You are required to add one ingredient to the soup, which has to be an edible item. There are five possible outcomes: great, good, neutral, bad, awful Come from Sports betting site VPbet. The two positive responses will net you friendship points with the entire vill…
By admin • December 26, 2024 • The Anacrusis is home not just to many types of weapons and aliens, but also dozens of perks that can enhance every episode you play with your friends and other players. To acquire those perks, you’ll need to find a Matter Compiler, which appears in different places across the game’s several episodes. Here’s what you need to know about the Matter Compiler and what kind of perks you can expect to unlock with it.Come from Sports betting site VPbet
The Matter Compiler is a unique sci-fi device that you’ll find in different places across every level of The Anacrusis. The first one you’ll find is right outside the safe room’s locked doors, and serves as the introduction to the device and its benefits. You’ll need to…
By admin • December 19, 2024 • As three Class III licenses are up for grabs in the downstate area of New York, companies and individuals are coming out of the woodwork to make suggestions. Borough President Vito Fossella wants to see developers give Staten Island and chance and bring a casino to the region.
A press conference was hosted earlier this week by Fossella proposing that Staten Island be considered as a location for a casino license. The borough president provided key points during the conference as to why he thinks the area would be good for gambling.
Consider Staten Island a Destination Point
During the conference, Fossella pointed out that Staten Island is one of a handful of places that doesn’t offer some form of gambling for downstate residents or visitors. He feels that the area sh…