India And UK Consider Shares Listing At GIFT City And London Stock Exchange

India has given its first confirmation to explore the possibility of local companies being listed directly on the London Stock Exchange (LSE).

This was announced by British Chancellor of the Exchequer Jeremy Hunt during a joint briefing with his Indian counterpart, Nirmala Sitharaman, following the 12th India-UK Economic and Financial Dialogue.

Sitharaman clarified that the process would begin with the International Financial Services Centre (IFSC) at GIFT City, and only after its establishment would consideration be given to listings in London.

Currently, Indian companies are not permitted to directly list on foreign exchanges, but can do so through instruments like depository receipts.

In July, India unveiled plans to allow companies to list on exchanges registered at the IFSC, a tax-neutral hub located in Gujarat International Finance Tec-City (GIFT City), facilitating easier access to foreign capital.

Hunt also mentioned that the UK is contemplating changes to the regulatory framework governing pensions and insurance funds. There is a strong inclination to invest more in productive assets, and discussions on this front were fruitful.

A mutual work plan was established to bolster pension and insurance sectors, encouraging private capital flow in both economies.

Highlighting London's status as the world's most international financial centre and the second-largest globally, Hunt emphasised that a majority of its asset managers do not currently invest in India.

He underlined India's potential as the fastest-growing G20 country and its clear trajectory towards achieving developed nation status by 2047.

The UK and India launched the UK-India Infrastructure Financing Bridge, a collaborative effort between NITI Aayog and the City of London aimed at leveraging expertise in planning and executing major infrastructure projects.

Sitharaman also expressed the UK's interest in expanding its presence in the GIFT City.

Both countries deliberated on negotiations for a bilateral investment treaty in tandem with free trade agreement (FTA) talks. Sitharaman stressed the intention to expedite discussions for swift agreements leading to the finalisation of the FTA.

The discussions also covered further engagement on financial services links, incorporating the interim recommendations of the India-UK financial partnership connectivity workstream. Opportunities for investment, including private sector involvement in the banking sector in both nations, were explored.

The discussions also encompassed collaborative efforts to promote inclusive growth and resilience, advance climate action, and form partnerships through technology and infrastructure transformation.

Sitharaman commended the success of the UK-India Green Growth Equity Fund, highlighting the efficacy of public-private partnerships in mobilising sustainable finance. Hunt also extended congratulations to India for the successful G20 summit under challenging circumstances.