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NEW DELHI: Finance minister Nirmala Sitharaman on Monday said that the government is currently focusing on listing Indian companies in Gift City before looking at allowing them to list directly overseas.
Her comments came after British chancellor of exchequer Jeremy Hunt talked about “the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies”.
While direct overseas listing by Indian companies is now permitted under the Companies Act, the government has not operationalised the plan and only recently decided to allow it in the Gift City, India’s only international financial services centre (IFSC).
“We are looking at commencing the listing at the IFSC. Once that is done, we may look at moving further and that’s what the Chancellor was saying,” Sitharaman said after the India-UK Economic and Financial Dialogue, while adding that the UK is willing to extend its footprint in Gift City.
The two countries, which are negotiating a free trade agreement, also discussed amendments to the bilateral investment treaty as the UK wants further flexibility.
Describing India as “one of the most exciting places anywhere in the world that investors wish to consider”, Hunt also sought an easier regime for British pension funds. “London is the second largest financial centre in the world, and the majority of our asset managers don’t invest in India. So, there’s a huge opportunity. We are looking at changes to the way our pensions and insurance funds are regulated, because 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, as well as India, we had very good discussions of what we need to do,” he said.
Sitharaman also announced the launch of the UK-India Infrastructure Financing Bridge, aimed at harnessing collective expertise in planning and implementing major infrastructure projects.
Her comments came after British chancellor of exchequer Jeremy Hunt talked about “the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies”.
While direct overseas listing by Indian companies is now permitted under the Companies Act, the government has not operationalised the plan and only recently decided to allow it in the Gift City, India’s only international financial services centre (IFSC).
“We are looking at commencing the listing at the IFSC. Once that is done, we may look at moving further and that’s what the Chancellor was saying,” Sitharaman said after the India-UK Economic and Financial Dialogue, while adding that the UK is willing to extend its footprint in Gift City.
The two countries, which are negotiating a free trade agreement, also discussed amendments to the bilateral investment treaty as the UK wants further flexibility.
Describing India as “one of the most exciting places anywhere in the world that investors wish to consider”, Hunt also sought an easier regime for British pension funds. “London is the second largest financial centre in the world, and the majority of our asset managers don’t invest in India. So, there’s a huge opportunity. We are looking at changes to the way our pensions and insurance funds are regulated, because 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, as well as India, we had very good discussions of what we need to do,” he said.
Sitharaman also announced the launch of the UK-India Infrastructure Financing Bridge, aimed at harnessing collective expertise in planning and implementing major infrastructure projects.
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