Plans to give ministers the power to block foreign listings on the London Stock Exchange have been broadly welcomed by City figures including one of the country's leading retail investment entrepreneurs.
The Treasury is reportedly mulling the right to intervene in flotations on national security grounds.
Billionaire Peter Hargreaves, the co-founder of investment platform Hargreaves Lansdown, said he would support tougher rules as "one rotten apple in the barrel affects the whole barrel" .
He added: "We don't want our stock market clobbered with companies that have dubious reporting and dubious shareholders. The cleaner you can have the stock market the more appealing it is not just to UK investors but to foreign investors, so I overwhelmingly support this initiative."
His comments followed a report in The Times which revealed that the Treasury is set to open a consultation on new powers that could see companies blocked from listing in the UK under certain scenarios. This includes if the government believed a foreign state was trying to undermine the LSE's reputation or was after state secrets.
A senior executive, who did not want to be named, said a crackdown could make things clearer for companies looking to list on the stock exchange and therefore make the UK market more attractive.
Tom Tugendhat, chairman of the foreign affairs committee, told The Times : "Britain's markets underpin our economy and our global reach. That's why we need to be careful who uses them. Dirty money and asset stripping have become a new form of attack on our country."
However Nick O'Donnell, who advises companies on listings for Baker McKenzie, said that while there is an opportunity here to "enhance London's reputation" there are also risks that could do the opposite.
"There is a risk that very wide powers based on loose concepts of 'national security' could backfire," he said. "An outcome that meant well-run, quality companies shy away from seeking a listing because of concerns that they would be caught up in global politics would not be a win for anyone."
The move follows the 2017 listing by Russian energy company EN+, which is associated with oligarch Oleg Deripaska.
The Financial Conduct Authority was powerless to stop the listing despite Mr Deripaska being subject to US sanctions and being accused of having close ties with President Putin.
A report by the Commons foreign affairs select committee criticised the Government for inaction, saying it was unfair to expect the financial watchdog to identify and prevent threats to national security.
EN+’s float is London’s eighth biggest listing since 2015, with the recent debut of Hut Group the largest since 2017.
The Treasury's move comes in the wake of sanctions imposed on embattled Belarusian President Lukashenko and other senior members of his government following a rigged election in August.