New Delhi, Feb. 26 -- Financial regulators are in discussions with the Centre to permit shareholders of GIFT City listed companies to sell their shares in the secondary market, three people familiar with the development said. The plan is to attract public listings and improve liquidity at GIFT City exchanges that have struggled to attract Indian companies so far.

Currently, resident Indians can sell their shares in a company listed on GIFT City exchanges only through an offer for sale (OFS) - either at the time of an initial public offering, or after the IPO. Unlike in mainland exchanges, they are barred from selling in the secondary market; if they want to sell, they must participate in another OFS, a time-consuming process for smaller ...