The International Financial Services Centres Authority (IFSCA) on April 22, 2026, issued the framework for preferential issues and qualified institutions placement under the International Financial Services Centres Authority (Listing) Regulations, 2024.
The following has been stated: -
•The framework under the International Financial Services Centres Authority (Listing) Regulations, 2024, lays down the rules for raising capital through preferential issues and qualified institutions placement (QIP) by listed entities in IFSC stock exchanges.
•It applies only to entities exclusively listed in IFSC and defines key concepts such as preferential issue and qualified institutional buyers.
•The framework prescribes eligibility conditions, including restrictions on recent share transfers and outstanding dues, along with mandatory approvals, fully paid-up securities, and in-principle stock exchange approval.
•It also sets timelines for convertible securities and specifies payment conditions, including provisions for warrants and forfeiture.
•Additional requirements for preferential issues include detailed disclosures, valuation reports, lock-in periods, and completion timelines, while QIP requires appointment of lead managers, preparation of placement documents, and due diligence.
•Overall, the circular ensures transparency, investor protection, and a structured process for capital raising in IFSC markets.
[Circular No.: F. No. IFSCA-PLNP/16/2024-Capital Markets]
