India, UK explore possibility of shares listing at GIFT City and LSE Under current regulations, Indian firms are not allowed to list directly on overseas exchanges. They can only list on foreign exchanges through instruments such as depository receipts :-Business Standard

 

Union Minister of Finance Nirmala Sitharaman with Jeremy Hunt, Chancellor of the Exchequer of UK, during the India-UK Financial Partnership (IUKFP) meeting at Vigyan Bhawan, in New Delhi, on Monday. Photo: PTI

The United Kingdom has received the first confirmation from India that it would explore the London Stock Exchange (LSE) for overseas direct listing of Indian companies, British Chancellor of the Exchequer Jeremy Hunt said on Monday.

“We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies,” Hunt said while addressing media persons in a joint briefing with his Indian counterpart Nirmala Sitharaman after the 12th India-UK Economic and Financial Dialogue.

Sitharaman, however, said: “As I think we’ve mentioned earlier once, we are looking at this, commencing with the International Financial Services Centre (IFSC) at GIFT City. Once that is done, we may look at moving further. Soon after that, it is business for India to consider listing in London.” Under the current regulations, Indian firms are not allowed to list directly on overseas exchanges. 

They can only list on foreign exchanges through instruments, such as depository receipts.

 In July, India said it would allow companies to list on exchanges registered at the IFSC, a new financial tax-neutral hub housed in Gujarat International Finance Tec-City (GIFT City), to give companies easier access to foreign capital.

The UK is also looking at changes in the regulatory framework of its pensions and insurance funds, Hunt said. “There’s a very strong desire on their part to invest more in productive assets. And we have huge pools of capital ready to be harnessed. So this is not just inside the UK, but also in India; we had very good discussions of what we need to do,” he further said.

Both sides have agreed to develop a work plan to support their respective pension and insurance sectors to channel private capital into their economies, the joint statement said. They also agreed to increasing trade in reinsurance.