International Financial Services Centres Authority (“IFSCA”) has issued a circular dated September 11, 2024, in respect of listing of debt securities on recognised stock exchange in International Financial Services Centre (“IFSC”).

International Financial Service Centres Authority (Listing Regulations) 2024 (“Listing Regulations”), was notified in August 2024, to provide regulatory framework for listing of specified securities, debt securities, depository receipts and other permitted financial products on the recognized stock exchange in IFSCA.

Regulation 72 of the Listing Regulations states that the issuer shall obtain a credit rating for its debt securities which are proposed to be listed on the recognised stock exchange from a credit rating agency either registered with the IFSCA or with a regulator in foreign jurisdiction.

IFSCA has received representations from market participants regarding difficulty in obtaining credit rating from a credit rating agency in a short span of time as some issuers are at an advanced stage of getting their debt securities listed on the recognised stock exchanges. In light of this, the IFSCA has decided that it will be mandatory with effect from October 1, 2024, to obtain credit rating from a credit rating agency either registered with the IFSCA or with a regulator in foreign jurisdiction for the debt securities proposed to be listed on the recognized stock exchange.