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Jan 20, 2005

LSE to focus on India, China, Russia

NEW DELHI - The London Stock Exchange (LSE) has decided to focus on three emerging and fast growing nations - India, China and Russia - as it sees more companies from these regions tapping the European capital market.

"India is a key market for us because of its long term GDP growth prospects. This in turn means Indian companies would need to raise more capital," London Stock Exchange head of international business development, Tracey Pierce, said.

More Indian companies are expected to list global depository receipts (GDRs) in LSE, she said but declined to give numbers. "We want to attract well-managed, growing and profit generating companies to list in LSE," she said.

Referring to the robust growth in India's exports, Pierce said, "Listing in LSE will help in profile and brand building exercise of the exporting companies in EU."

Moreover, Pierce said, the Indian accounting norms were similar to the International Accounting Standards preferred by European bourses. This will help Indian companies to comply with the LSE listing standards easily.

The London bourse plans to transfer the majority of the shares of LSE-listed Indian companies to its international order book that would help in greater trading, higher liquidity and volumes while lowering transaction costs.

At present, India ranks sixth after Russia, Taiwan, South Korea, China and South Africa in terms of value of business transacted in emerging market stocks, she said.

The total value of business in GDRs of 18 Indian companies listed in LSE stood at 6.47 billion pounds (US$12 million) in 2004, which was almost 50% higher than 4.56 billion pounds in January-December 2001.

(Asia Pulse/PTI)

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