GIFT City’s next big bet: Can direct listings finally kick-start its equity market?

GIFT IFSC’s bond market has already attracted nearly $85 billion, but equity listings remain at an early stage. The proposed direct-listing framework could give companies a new route to access public markets at India’s international financial centre.

Pradeep Ramakrishnan, Executive Director at the International Financial Services Centres Authority (IFSCA), said companies will soon be able to list their shares at GIFT City without going through a traditional initial public offering (IPO).

Speaking at the Morningstar Investment Conference India 2026, Ramakrishnan said IFSCA plans to introduce the “direct listing” framework in the next few months. The regulator has already consulted the market on the proposal.

No traditional IPO route

Under the proposed framework, companies would not need to come through a conventional IPO process to list at GIFT City.

“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,” Ramakrishnan said.

The move is aimed at getting the equity market at GIFT IFSC off the ground. While the centre has built significant activity in bonds and international borrowing, equity remains a relatively nascent segment.

Ramakrishnan said nearly $85 billion has been raised through bonds listed at GIFT IFSC, including around $18 billion through green, social and other sustainable bonds.

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GIFT City’s growing financing role

The international financial centre has also become a major route for Indian companies raising funds overseas. According to Ramakrishnan, almost 75% of India’s external commercial borrowings (ECBs) take place through GIFT City.

The proposed equity-listing framework comes as the centre expands across several areas of financial services, including fund management, global investing, commodities and aircraft and ship leasing.

As of June 2026, GIFT IFSC had around 1,400 registered entities across 25-30 business lines, including 235 fund management entities managing more than 400 funds.

Retail investors are also joining the ecosystem

Ramakrishnan said nearly 3 million Indians have signed up under GIFT City’s revamped global access programme. The platform allows Indian investors to buy shares, bonds and exchange-traded funds across about 50 countries through brokers based at GIFT City.

Investors can remit up to $250,000 a year, the limit under the Reserve Bank of India's Liberalised Remittance Scheme.

Indian mutual fund houses also have another route through their GIFT City operations. While Indian fund houses face an industry-wide $7 billion cap on overseas investments, the same cap does not apply to their GIFT City arms. Around 10-12 fund houses have established operations there, allowing Indians to access global markets with ticket sizes starting at $500, according to Ramakrishnan.

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From bond hub to equity market

IFSCA is also looking to expand GIFT City’s role in commodities. Ramakrishnan said the regulator wants the centre to have a greater say in gold pricing rather than simply follow international prices.

About 110 tonnes of gold and 1,200 tonnes of silver have been imported through GIFT IFSC so far, with IFSCA seeking to move more transactions from over-the-counter markets to exchanges.

The direct-listing proposal therefore forms part of a broader attempt to deepen GIFT City’s financial ecosystem. For equity markets, the next test will be whether a simpler listing route can attract more issuers and turn GIFT IFSC’s existing strength in international finance into a deeper equity market.