26 December 2011

Indian exchanges - pole position in the world? Really?

A PwC report seems to think that India will be among the top two destinations for foreign capital to list in India.

Where will the leading listing venues be in the future? Where will newly listed companies come from and what will they be looking for? What are the drivers of change in the IPO landscape? These are some of the questions asked in this report.  



38% of respondents think that Indian exchanges will be an important listing destination for foreign companies by 2025

India also scores well with survey respondents, with more than 38% believing that the country’s exchanges will be important listing destinations for foreign companies by 2025.



I'm not too sure the Indian exchanges will remain competitive if the 5% ownership limit is retained (unprecedented anywhere in the world) by our regulator and government. The limit is even more strict for foreign investors - eliminating the scope for any cross border M&A with Indian exchanges - even Indian exchanges cannot acquire foreign exchanges if they seek to pay with equity. Time to wake up and smell our potential



See my previous piece on the 5% limit - Governance and Ownership in Exchanges




On a linked note, we have also murdered the market for Indian Depository Receipts with silly rules. See my previous post here



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