The New York Stock Exchange Euronext (NYSE Euronext) has initiated talks with at least nine Indian companies for a possible listing of their securities on the exchange in the next three to six months.
The exchange’s newly-appointed executive vice-president, Ronald Kent, who is the head of international listings, today said that a host of Indian large-cap and SME companies were keen on raising capital through NYSE as some early signs of economic recovery emerged across the globe.
“We are looking at India as a growth market in Asia-Pacific. The Indian economy is estimated to grow at over 6 per cent, when most of the other economies are talking about recession and falling GDP. Indian companies are keen on raising capital and are looking at the profile of the customers that are required when markets recover,” said Kent.
As many as 12 Indian companies, including the beleaguered IT and software services firm Satyam Computer Services, are currently listed with NYSE.
Although the exchange had not modified its listing norms so far, it might have to review the listing and compliance norms in the coming days if the ongoing investigations into the Satyam scam unraveled further fraud records, Kent said.
“When the Satyam fraud was exposed, the regulators of the US, India and the UK held discussions to find a solution for such extraordinary events. As an exchange, we need to ensure that our investors are safeguarded from the impact of such frauds.
“We continuously monitor all lisitng parameters, but if in future some more things are uncovered about Satyam or any other company, we may need to revisit the listing norms. After the Satyam event, all exchanges will require to have a good compliance system,” he added.
Kent said that in an effort to protect the investors’ interest, NYSE had declined Satyam’s request for delisting, following the fraud.
He further said that NYSE, which currently holds a 5 per cent stake each in the National Stock Exchange (NSE) and Multi Commodity Exchange (MCX), was looking at the future economic growth prospects of SMEs across all countries, but a decision on acquiring a stake in the proposed SME exchange in India was not concrete at present.
During the past year, Indian companies have raised about $13 billion of capital worldwide, of which about $9 billion was raised at NYSE and about $2 billion in London, he said.
The total market capitalisation of NYSE Euronext-listed companies stood at $15.1 trillion at the end of February 2009, and its equity exchanges transact an average daily trading value of about $84.4 billion.
The average daily trading volume of Indian stocks on the NYSE was recorded at 13.9 million shares as on March 31, 2009, Kent said.
