The IUKFP has identified several key recommendations for policymakers and regulators in India and the UK.
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A report from the India-UK Financial Partnership (IUKFP) – the leading forum for financial services cooperation between India and the UK – sets out how the two countries can strengthen equity capital markets connectivity by enhancing the current listings regime between the Indian and UK stock exchanges, allowing equity share cross-listings.

The report, ‘Catalysing bilateral growth: Connecting India and the UK’s equity capital markets’, proposes a series of recommendations to realise this vision, including urging policymakers to allow and enable Indian companies with a primary listing on National Stock Exchange (NSE) and/or BSE to obtain a secondary listing on the London Stock Exchange and vice versa.

Traditionally, depositary receipts (DRs) have been used by Indian companies for raising international equity capital and overseas secondary listings, but they have become less popular over the last decade. Recent regulatory changes, such as India’s new rules for international equity listings in certain permitted jurisdictions and the UK’s new International Secondary Listing segment, have paved the way for direct equity share cross-listings between both countries.

Key proposals

The IUKFP has identified several key recommendations for policymakers and regulators in India and the UK. It recommends amending Indian regulations to permit equity share cross-listings, including the UK as a permitted jurisdiction and the London Stock Exchange as a permitted stock exchange.

It has recommended that equity shares issued by UK listed companies be permitted to list on Indian stock exchanges. Regulators should be empowered to approve foreign listing prospectuses, allowing the UK’s Financial Conduct Authority and India’s Securities and Exchange Board to review and approve prospectuses for cross-listings.

Another ask is that London listed companies be permitted to report in International Financial Reporting Standards (IFRS) and international auditing standards for equity share listings on Indian exchanges. Permitting omnibus account structures for cross-border settlement and developing direct settlement of shares in India and the UK are other important recommendations.

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Published on April 11, 2025