Mehta-Led Team To Far-East Draws ood Response'

The six-member capital markets delegation led by the Securities and Exchange Board of India (Sebi) chairman D R Mehta, which went to the far-east to woo investors, has met with enthusiastic response, according to the Sebi chief, who returned yesterday.

"The Japanese investors are a cautious lot. They take time to make decisions but once they do, they invest in a big way. One or two Japanese firms may come to India as foreign institutional investors (FIIs) and also to set up brokerages," Mehta said.

The other members of the delegation included Sebi executive director Pratip Kar, Bombay Stock Exchange president M G Damani, National Stock Exchange managing director R H Patil, NSDL managing director C B Bhave and Narendra Jadhav of the Reserve Bank of India.

 

During a meeting organised by the Indian High Commission and a consortium of Japanese firms including Nicco Securities, Nomura Securities, Daiwa Securities, Yamaichi Securities, and Kokusai Securities, the delegation met over 160 Japanese investor groups.

"The turnout was very enthusiastic and the investors asked many questions about the Indian securities market," Mehta added. Templeton boss J Mark Mobius was also present at the meeting.

The team highlighted that the settlement system in India has improved tremendously in the last two years, while pointing out that a risk-free, trade guarantee fund-backed settlement system with an insurance cover would be ideal for the overseas investors.

While Bhave underscored the smooth functioning of the depository system, Jadhav's analysis of the Indian economy and its reforms process was also enthusiastically received.

The Sebi chief also said how the competition between the Bombay Stock Exchange and the National Stock Exchange has benefited investors in India.

In Hong Kong, more than 100 investors attended the seminar and India's "efforts to hardsell for the first time" received plaudits.

Mehta said that wrong impressions about India has been dispelled and the overseas investors have been informed that FII registration is now a fast process in India.

The bullishness of the overseas investors was also on account of a good Union Budget presented by the finance minister which provided tax sops to corporates as well as individuals. India's efforts in combating the fiscal deficit was also appreciated.

Bhave described the response of Singapore-based investors as "enthusiastic and encouraging".

Investors were also informed about the relaxation of FII norms on investing in the debt market.

The BSE president was not available for his comments.