GIFT City eyes direct listings without IPO to deepen equity market, says IFSCA's Pradeep Ramakrishnan

Companies will soon be able to list their shares at GIFT City without going through a traditional initial public offering, as the International Financial Services Centres Authority (IFSCA) prepares to introduce a direct-listing framework in the next few months.

"There is no need to come in through a traditional IPO. You are automatically onboarded as a listed company, and your shares become available for trading," Pradeep Ramakrishnan, Executive Director at IFSCA, said in his keynote address at the Morningstar Investment Conference India 2026.

IFSCA has already consulted the market on the proposal, Ramakrishnan said. The move is aimed at developing the equity market at GIFT IFSC in Gujarat, where equity activity remains at an early stage even as the centre's bond market has expanded rapidly.


Nearly $85 billion has been raised through bonds listed at GIFT IFSC, including about $18 billion through green, social and other sustainable bonds.

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GIFT City has also become a key route for Indian companies raising money overseas. Almost 75% of India's external commercial borrowings (ECBs) are routed through GIFT City, Ramakrishnan said.

Retail participation in the centre's global investment platform is also growing. Nearly 3 million Indians have registered under GIFT City's revamped global access programme, he said.

The programme allows Indian investors to buy shares, bonds and exchange-traded funds (ETFs) across about 50 countries through brokers based at GIFT City. Investors can remit up to $250,000 a year under the programme, in line with the limit under the Reserve Bank of India's Liberalised Remittance Scheme.

Domestic mutual fund houses are another channel for overseas investing through GIFT City.

Indian fund houses face an industry-wide $7 billion cap on overseas investments, but the limit does not apply to their GIFT City arms. Around 10 to 12 fund houses have established operations there, allowing Indian investors to access global markets with ticket sizes starting at $500, Ramakrishnan said.

Capital flows through the financial centre are moving in both directions. Money is being channelled to around 90 countries and is also coming into GIFT City from roughly as many countries, he said.

IFSCA is also looking to expand GIFT City's role in the gold market, with the regulator seeking to move more transactions from over-the-counter markets to exchanges.

"India is one of the largest importers of gold, and it is important that we have a say in its pricing," Ramakrishnan said.

About 110 tonnes of gold and 1,200 tonnes of silver have been imported through GIFT IFSC so far, he said.

On sustainable finance, IFSCA last week released a framework for blended finance that allows philanthropic capital and grants to be pooled with funding from regular investors, subject to Foreign Contribution Regulation Act (FCRA) rules.

Banks operating at GIFT City are required to direct 5% of their incremental lending towards sustainable finance. Banks have lent about $8 billion under the requirement, Ramakrishnan said.

Six years after IFSCA was set up, GIFT IFSC had about 1,400 registered entities across 25 to 30 business lines as of June 2026.

These include 235 fund management entities managing more than 400 funds. Nearly 500 aircraft assets and 42 ships have been leased from the centre, while four foreign universities have established campuses there.

Ramakrishnan linked GIFT City's growth to India's broader economic trajectory, pointing to the country's young population, economic growth and its target of becoming a developed nation by 2047.

"This is a magnet for investors and issuers alike," he said.

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