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Cross-Holdings Block To Free-Float Index

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:40 AM IST

The Bombay Stock Exchange (BSE) today kicked off a nationwide debate on whether and how its benchmark Sensex can be shifted to the new trend. In an exclusive interview, Mark Makepeace, chief executive of FTSE, the UK index, touched on the concerns and issues faced by India in this regard.

Why is it important for India to shift its indices to free float?

There is a huge investment potential for Indian market especially in the coming years as it is expected to grow in size. But timing and access to the market is of crucial importance. FIIs look at the economics of India and the indices are a reflection of the state of affairs. Therefore, they should reflect the global practices and trends. India needs to have international standards if it has to draw big money.

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How should the issue be tackled?

The right way to proceed is to have contemplation because awareness and understanding are two major issues to be taken care of when introducing a new concept such as free float. Then, we have to follow it up with clear-cut measures.

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First Published: Mar 22 2002 | 12:00 AM IST

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