FM Sitharaman with UK's Chancellor of the Exchequer Jeremy Hunt on Monday.
Credit: PTI Photo
A big step forward in capital markets cooperation India and the United Kingdom on Monday agreed to explore the possibility of allowing direct listing of securities by Indian firms at London Stock Exchange.
The move follows the Indian government’s announcement related to allowing domestic companies to access global markets.
“The UK welcomes India’s recent announcement to enable Indian companies to list their equity shares on the international exchanges in GIFT IFSC (GIFT International Financial Services Centre),” as per a joint statement issued after the 12th India-UK Economic and Financial Dialogue in New Delhi.
It noted that the move will facilitate access for the entities based in the UK to invest in Indian companies.
The Indian delegation at the dialogue was led by Union Finance Minister Nirmala Sitharaman while UK Chancellor of the Exchequer Jeremy Hunt led the British side.
During the meeting the two countries agreed to set up the UK-India Infrastructure Financing Bridge, a collaborative initiative to leverage expertise and investment in the infrastructure sector. The initiative will be led jointly by NITI Aayog and the City of London.
“This partnership seeks to secure long-term investment for vital infrastructure sectors in India,” the two countries noted in the joint statement.
India-UK Infrastructure Finance Bridge (UKIIFB) stakeholders will seek to jointly build a diverse investment and financing system that is long-term, stable and sustainable with manageable risks, it added.
According to a statement issued by the Union Ministry of Finance, the focus of the dialogue was also “towards enhancement of the knowledge exchange, cooperation and support between India and UK to further the infrastructure development priorities, robust FinTech partnership and sustainable Finance towards long-term growth objectives.”