Listing on LSE can become tough. The United Kingdom Treasury has come up with new rules based on tightened national security. New companies may face a block for then reason. However, proposals are being welcomed by the department and it will take a look at those in a couple of months' time period.
As reported by some of the national media houses, it is being argued whether listing efforts of companies can be stopped if a foreign state gets access to commercial secrets. Simultaneously, the companies which are owned by individuals who may provide harm to the UK interests could be treated the same.
According to a Treasury spokeswoman, the country has a reputation of providing clean and transparent markets and this commitment has made them a popular financial center in the world. The efforts will further be boosted to stop companies get listed if they are posing a national security risk. A consultation would be launched in due course to brief more about the updates.
The announcement of the Treasury comes after Chancellor Rishi Sunak stated to relax the listing rules in order to attract more foreign companies. Tech companies could be more attracted to LSE than other stock exchanges including the NYSE.
Some are arguing the FCA lack perfect monitoring feature compared to the same in the United States as scandals such as Tesco, NMC Health and Carillion have been a reality here.
Meanwhile, it is said the new rules may be more focused on the areas of importance like national infrastructure, defense and technology.
2022 started with inflation and geopolitical tensions. These factors have led to losing confidence among retail investors. The central banks have increased interest rates and the increase in prices of food, fuel and other necessary items has slowed down the market pace. It is predicted the market may not witness a good recovery for the entire year.