India to consider foreign exchange listing for local firms

Finance Minister Nirmala Sitharaman said Monday that India will reconsider listing local firms on foreign exchanges like the London Stock Exchange to help startups grow.

India is considering the London Stock Exchange, one of the largest and tech-heavy exchanges after the New York Stock Exchange and Nasdaq. India considered allowing overseas listing of Indian firms in 2020, but later backed off.

“We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies,” said British Finance Minister Jeremy Hunt at a press conference.

India has been considering ways to help local firms raise capital and valuations for years. The new discussions come as many startups in the country consider public listings.

Indian stock exchanges are dominated by financial services, consumer, energy, and material companies. Mirae Asset predicted disproportional tech stock growth in the Indian stock exchanges’ index over the next two decades earlier this year.

Indian startups considering going public may prefer exchanges where the audience understands their business models and is more comfortable with tech firm risk.