New Delhi, India
September 12, 2023
In a significant development following the 12th India-UK Economic and Financial Dialogue, India is actively considering the possibility of allowing its companies to list directly on the London Stock Exchange (LSE). This move, aimed at enhancing international investment opportunities, was announced in a joint statement by officials from both nations.
Empowering Indian Companies on the Global Stage
Jeremy Hunt, the UK Chancellor of the Exchequer, expressed his enthusiasm, stating, “We are delighted that India is exploring the possibility of enabling its businesses to join the London Stock Exchange. This could mark a significant advancement for Indian enterprises in the global arena.”
Commencing with a Focus on IFSC
Finance Minister Nirmala Sitharaman, who joined Hunt in making the announcement, elaborated on their strategy, which is to initially allow Indian companies to directly list on the International Financial Services Centre (IFSC) exchanges. She stated, “Our initial emphasis will be on facilitating listings on the IFSC platforms.”
Regulatory Framework in the Works
The Indian government is actively working on formulating comprehensive regulations governing payments and settlements for companies seeking direct listings on IFSC exchanges. These regulations are expected to be finalized within the coming months.
Fostering Collaborative Infrastructure Development
This move to facilitate Indian companies’ access to the LSE coincides with the launch of the UK-India Infrastructure Financing Bridge. This collaborative initiative is designed to leverage the combined expertise and resources of both countries to drive forward major infrastructure projects.
Expanding Investment Opportunities in India
Hunt highlighted the significant potential for increased investments in India, particularly due to London’s status as a major global financial center. He discussed the potential for regulatory changes that would make it easier for pension and insurance funds to invest in productive assets.
Advancing Discussions on Free Trade and Investments
The joint statement also shed light on ongoing deliberations regarding a Free Trade Agreement (FTA) and a bilateral investment treaty between India and the UK. Both nations expressed eagerness to expedite FTA negotiations, while acknowledging the need for further discussions to resolve differences.
Leadership Commitment
This development follows a recent meeting between India’s Prime Minister Narendra Modi and the UK’s Prime Minister Rishi Sunak during the G20 summit. During this meeting, they reaffirmed their commitment to expedite progress towards signing the eagerly anticipated FTA.
