“The financial services sector is central to the UK economy, and at the heart of this government’s growth mission,” said Rachel Reeves, the UK’s new chancellor, on 11 July. She was commenting on the UK’s Financial Conduct Authority (FCA) approving the biggest changes to its listing rules in over three decades, which take effect from July 29. “These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts and ensuring we attract the most innovative companies to list here,” she added.

London’s shake-up of its regulations has long been in making. The UK markets have been battered by global competition, and London risks losing its stature as one of the world’s leading financial centres.

This move can be seen as similar to SEBI’s recent series of discussion papers directed towards ‘ease of doing business,’ but on some specifics like related party transactions and control, the contrast between the UK regulators and our regulators is telling as regulations have moved in opposite directions.

There is a lot to unpack in UK’s new listing rules, but what is curious is that the regulator has repeatedly warned that the new rules will mean there is a higher risk for investors and defended itself by arguing that “the changes we are setting out today will better reflect the risk appetite the wider economy needs to achieve growth and promote a more diversified listed market.”

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