Indian firms may be allowed to list directly on London Stock Exchange: Report
Union Finance Minister Nirmala Sitharaman made the comment during a joint press conference with British Finance Minister Jeremy Hunt.
- Sep 11, 2023,
- Updated Sep 11, 2023 6:48 PM IST
Union Finance Minister Nirmala Sitharaman on Monday said that India is looking to reconsider the proposal allowing domestic firms to list on the foreign stock exchanges directly.
The central minister made the comment during a joint press conference with British Finance Minister Jeremy Hunt. The press conference was held after the two countries held bilateral discussions during the G20 meetings in New Delhi.
UK minister Hunt said that the Indian government is willing to consider the proposal that allows Indian firms to list directly on the London Stock Exchange (LSEG).
“We are particularly pleased to make a big step forward to make a first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies,” Hunt told media.
These comments come as the revival of a plan, which was put on hold in 2020 after domestic opposition and concerns related to potential tax losses. A faction of the ruling party was also against the proposal as they thought that it would decrease India’s regulatory oversight on such firms.
Earlier in 2020, Reuters had also reported that the London Stock Exchange was discussing potential foreign stock listings with various Indian tech firms, but the plans were put on hold after the Indian government decided to put its decision on hold.
Earlier this year in July, the government gave permission to the Indian firms to list themselves on the exchanges situated in the International Financial Services Centre (IFSC).
It’s a new financial hub, situated in Gujarat’s GIFT (Gujarat International Financial Tech) City. The government had created this city with the aim of providing Indian firms an easier access to the foreign markets.
“We have mentioned earlier once that we are looking at listing, commencing with the IFSC, so once that is done, we may look at moving further (with overseas listing),” Sitharaman said at the press conference.
“So at this stage, we have said that we are looking at listing in IFSC first,” she added.
Union Finance Minister Nirmala Sitharaman on Monday said that India is looking to reconsider the proposal allowing domestic firms to list on the foreign stock exchanges directly.
The central minister made the comment during a joint press conference with British Finance Minister Jeremy Hunt. The press conference was held after the two countries held bilateral discussions during the G20 meetings in New Delhi.
UK minister Hunt said that the Indian government is willing to consider the proposal that allows Indian firms to list directly on the London Stock Exchange (LSEG).
“We are particularly pleased to make a big step forward to make a first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies,” Hunt told media.
These comments come as the revival of a plan, which was put on hold in 2020 after domestic opposition and concerns related to potential tax losses. A faction of the ruling party was also against the proposal as they thought that it would decrease India’s regulatory oversight on such firms.
Earlier in 2020, Reuters had also reported that the London Stock Exchange was discussing potential foreign stock listings with various Indian tech firms, but the plans were put on hold after the Indian government decided to put its decision on hold.
Earlier this year in July, the government gave permission to the Indian firms to list themselves on the exchanges situated in the International Financial Services Centre (IFSC).
It’s a new financial hub, situated in Gujarat’s GIFT (Gujarat International Financial Tech) City. The government had created this city with the aim of providing Indian firms an easier access to the foreign markets.
“We have mentioned earlier once that we are looking at listing, commencing with the IFSC, so once that is done, we may look at moving further (with overseas listing),” Sitharaman said at the press conference.
“So at this stage, we have said that we are looking at listing in IFSC first,” she added.