Indian firms look at listing in Singapore SE

Indian companies have now started looking at the Singapore Stock Exchange for fund raising and listing. The SGX became a shareholder in the Bombay Stock Exchange last week.

Two Indian companies, Meghami and Berger, are already listed on SGX and according to a leading investment banker, a chemical and a shipping company are also pursuing their plans for raising fund and getting listed on the SGX. "The queue is getting longer," he said.

SGX, the banker said, is also interested in India's commodity market.

BSE and SGX are quite enthused about working jointly for listing and derivatives. Seck Wai Kwong, senior executive vice president, SGX, said in an e-mailed reply that the exchange wants to identify new business development opportunities in the areas of listings and product development, including securities, derivatives and commodities.

"The signing of the agreement marks the beginning of our collaborative efforts. We are holding discussions with BSE on the possibilities."

In terms of time zone, Singapore falls between Japan and India and hence one of the ideal markets for raising funds by companies having a good track record. An investment banker said that companies with a good track record would find SGX an attractive option to list.

Kwong said as an international platform for capital formation, there are several ways a company can raise funds through a listing on SGX. In addition to primary and secondary listings, companies can also choose to issue global depository receipts. We are positive that opportunities for Indian companies seeking offshore funds will increase given that India's financial liberalisation is taking shape."

On becoming a shareholder in BSE, he said that It is a landmark transaction for both BSE and SGX as this is the first time two Asian exchanges have come together for a transaction in such a manner.

"We look forward to supporting BSE's goal to strengthen their competitive position. SGX offers our Asian advantage to BSE as Asia-Pacific's first demutualised and integrated securities and derivatives exchange. We will also share with BSE our experience in growing our derivatives market and collaborate with them to grow their business in India."