Only “permissible holders” can buy or sell equity shares of Indian public companies listed on IFSC exchanges, said Ketaki Mehta, partner, GIFT City at Cyril Amarchand Mangaldas. “Importantly, a permissible holder cannot be a person resident in India. Consequently, resident Indians, whether individuals or companies, are prohibited from purchasing or selling such shares on IFSC exchanges. Given this restriction, the only viable exit route available to resident Indian shareholders is through a structured OFS initiated by the company,” Mehta added.
