The Hindu : Business : Nasdaq woos Indian cos.

Online edition of India's National Newspaper
Wednesday, Aug 16, 2006

Business

Business

Nasdaq woos Indian cos.

Oommen A. Ninan

Bangalore office provides ground support

Robert Greifeld

MUMBAI: The biggest incentive for companies to list on NASDAQ (National Association of Securities Dealers' Automated Quotations) of the U.S. is the fact that "it is the best performing, fairest, fastest and most transparent'' market in the world, says Robert Greifeld, President and Chief Executive Officer of the exchange.

"Our commitment to India is evident from the fact that we were the first overseas exchange — and still the only one — to have a full-fledged office in India,'' Mr. Greifeld said, adding that choosing a market (for listing) and deciding what was best for investors should be a conscious decision and that moving to a less regulated market would be a short-sighted approach.

Unique advantage

In an e-mailed interview with The Hindu recently, Mr. Greifeld said NASDAQ's Bangalore office provided support on the ground to Indian companies listed on the exchange.

In addition, it was involved in advising its target companies (namely, companies in India which it was seeking for listing on the exchange) on matters relating to issues like the US GAAP (generally accepted accounting principles) and compliance with the Sarbanes Oxley law and was closely working with them to chart out a road map that would lead to their listing on NASDAQ. "Ultimately, this encourages greater analyst coverage and visibility for the company (seeking listing), which plays an important role in building the company's brand in the US.''

"We are currently in talks with several Indian companies drawn from various sectors and are confident that we will see more Indian companies listing on NASDAQ in the future,'' Mr. Greifeld said.

Asked what was the advantage that listing on NASDAQ offered compared to the New York Stock Exchange (NYSE), he said, "In 1971, when NASDAQ was formed, every single market on the planet was floor-driven. Today, if we look globally, we see that the rest of the world is following NASDAQ's electronic model.

"We use technology to provide speed and transparency. It allows all buying and selling interests to be displayed globally - at multiple levels. We believe that the competitive market of the future has to be transparent and that the competitive open system is the most efficient way of serving investors and meeting their needs.''

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