The Hindu : Business : SEBI for easing procedures of cross-listing

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Tuesday, Apr 08, 2008
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SEBI for easing procedures of cross-listing

MUMBAI: The Securities and Exchange Board of India is considering measures to smoothen the procedures of cross-listing of companies on bourses in India and abroad, C. B. Bhave, Chairman, said here on Monday.

“It is our belief that companies which are listed abroad would be interested to come to the Indian market... Similarly, Indian companies which have operations in other countries would be interested in listing abroad. We want to see how to smoothen this process,” Mr. Bhave told reporters on the sidelines of a seminar here. He said the U.S. and European markets were already making serious efforts to promote cross-listing of companies.

The market regulator’s comments came close on the heels of remarks of New York Stock Exchange Euronext CEO Duncan L. Niederauer that the exchange was considering listing in Asian markets, including India.

Earlier, speaking at the seminar on ‘India-Hong Kong Financial Sector Cooperation,’ Mr. Bhave said the country was looking to enhance mutual cooperation.

The country’s financial sector was opening up and it was welcoming foreign fund managers, brokerages and investment bankers to set up shop here.

“We welcome foreign investment through FIIs into the domestic market,” he said. On listing of foreign corporates on Indian bourses, Mr. Bhave said this was yet to happen.

“Even after formulating regulations for Indian depository receipts, a way by which foreign corporates can have an exposure to this market, we are yet to get a response from foreign corporates,” Mr. Bhave said. He said integration within Asia was happening at a fast pace and investment flows into Asian countries were not just into equity markets. “Flows are not only in terms of investment in capital markets. There are different kinds of capital flows like trade flows,” he said.

Mr. Bhave said the regulator was keen to safeguard the interests of investors and would encourage innovation in the market. On FIIs’ collaterals investment, he said SEBI would hold a meeting with FIIs, the custodians and all institutional participants before finalising any regulation. — PTI

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