India and the UK are looking into the possibility of listing debt instruments and shares at IFSC-GIFT City and the London Stock Exchange (LSE), according to Finance Minister Nirmala Sitharaman on Monday.
After the conclusion of the 12th India-UK Economic and Financial Dialogue, Sitharaman stated that the UK had expressed its willingness to further increase its footprint in the IFSC-Gujarat International Finance Tec-City (GIFT City) and foster strong fintech partnerships.
“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, and that’s where you heard the Chancellor saying soon after that, it is for India to consider listing in London. So, at this stage, we have said that we are looking at listing in IFSC first,” she said.
These platforms allow for the listing of debt, such as green and masala bonds, in order to raise foreign capital. Following the meeting, Jeremy Hunt, the UK’s Chancellor of the Exchequer, expressed his appreciation for the work being done to direct list Indian companies on the London Stock Exchange (LSE).
“We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the LSE as an international destination for the direct listing of Indian companies.
“Alongside that, there is a new Pensions and Insurance Partnership, the establishment of knowledge and expertise-sharing and the new UK Infrastructure Financing Bridge and a deepened partnership on the developmental GIFT City. So, we can really support each other’s plans to strengthen the relationship and the way the next step of this is a comprehensive FTA and Bilateral Investment Treaty,” Hunt said.
With over 50% of the total aggregate amount originated globally raised, the LSE is the largest global center for Masala Bonds. Indian companies have raised 13.41 billion pounds in masala, dollar, and green bonds listed on the LSE over the past five years. Among the first foreign banks to open offices in GIFT City were UK banks.
