Firms might be blocked from itemizing on the London Inventory Change on nationwide safety grounds, beneath new guidelines being thought-about by the Treasury.
The division mentioned it would seek the advice of on the proposals within the coming months.
As first reported by the Financial Times, it would contemplate whether or not a list might be stopped if it gave a overseas state entry to state or business secrets and techniques.
Corporations owned by individuals who would possibly hurt UK pursuits is also blocked.
In a press release on Tuesday, a Treasury spokeswoman mentioned: “The UK’s fame for clear, clear markets makes it a lovely world monetary centre.
“We’re planning to bolster this by taking a focused new energy to dam listings that pose a nationwide safety threat, and can launch a session to tell its design within the coming months.”
It comes after Chancellor Rishi Sunak mentioned he deliberate to loosen up the UK’s strict inventory market itemizing guidelines to draw extra fast-growing corporations from overseas.
Proponents say it might draw a lot wanted funding to the UK, as expertise corporations could be inspired to decide on London over locations like New York to record their shares.
Nevertheless, some concern it might result in extra accounting scandals, as boards would doubtlessly be much less accountable to traders.
In addition they argue that the Metropolis watchdog, the Monetary Conduct Authority, lacks the enamel to manage corporations as carefully as its friends within the US, following scandals at corporations akin to Carillion, NMC Well being and Tesco.
Below the Treasury’s nationwide safety proposals, corporations owned by individuals whose actions might hurt UK pursuits is also blocked from promoting shares on the London market.
The brand new guidelines could be centered on strategic areas of significance akin to expertise, defence and nationwide infrastructure.