'Long way to go for Indian SEs'

The Indian stock market has long way to go before it truly becomes a global stock exchange, this was the underlining message given by the top boss of Munich Stock Exchange during his visit here.

When asked about the difference between the German and Indian stock market system, Uto Baader, president of Munich Stock Exchange, said, "There are three major disadvantages in Indian stock market that it is not freely accessible to common people, the non fully convertibility of Indian rupee and taxing the foreign investors".

Uto Baader is also chairman of German-based Baader Wertpapierhandelsbank AG and was in Ahmedabad on the occasion of the first conference on 'Islamic Investment Opportunities' in India.

According to him, the Indian stock exchange is not freely accessible to common people and the stock has to be accessible through channels. The easy way of buy or sell is not available in Indian stock exchange. "India is segregating itself from the rest of the world," said Baader.

He emphasised this by giving an example of Munich stock exchange where any person can access the stocks listed on the exchange and trade directly.

"The next important disadvantage is the non-convertibility of Indian rupee that I believe slows the growth" said Baader.

He was also against the taxing of foreign investors on making profit on Indian stocks by the Indian government. "I believe taxing foreign investors should be abolished."

He further said that it was a global practice that the government doesn't tax foreign investors investing in stocks. He was in support of removal of trade barriers on farm products imposed by US and UK.

"These countries should bring down the subsidy of their farming products and allow Indian farm products", he said.

Talking on Mittal steel's takeover of Arcelor, he said, "In the coming years more number of Indian companies will be taking over UK and US companies".

Presently, 50 Indian companies are listed on the Munich stock exchange.