Markets regulator Sebi has allowed multilateral and statutory organizations 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 centers.
IFSC is aimed at providing facilities and regulations comparable to other international financial centers in the world.
Amending the definition of the 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 of the country of its incorporation, can issue securities.
Besides, multilateral or statutory organizations, 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.