The Nasdaq Stock Market has entered into talks with a number of Indian companies to get them listed at the exchange. "As many as fifty Indian companies have the potential to get listed at the Nasdaq Stock Market. Only four have actually listed themselves so far, against 128 companies from Israel," informed director, south Asia, Ghanshyam Dass.
"We are in the process of educating companies on the advantages of listing. However, Nasdaq is not free from volatility, but it is controlled by many checks and balances," he informed.
Talking on the advantages of Nasdaq listing, Dass said the exchange provides increased liquidity when compared with the New York Stock Exchange, apart from higher efficiency, better settlement process and lower cost of operation.
Listing at Nasdaq does not depend on issuers' share price in India, nor is it dependent on share prices of comparable companies. The price is also independent of market condition in India or interest rate trends.
However, investors at the exchange look for high growth companies and the general perception that IT companies only get listed at the exchange is also incorrect. "In fact, 64 per cent of the companies listed with the Nasdaq are from the manufacturing sector," informed Dass.
The exchange also provides increased secondary market liquidity, apart from reputation, prestige and visibility. Listing at the exchange also requires proper disclosure, and accounting norms are very stringent. Nasdaq also adequately dilutes control, with it being controlled by at least 400 share holders.
"We at Nasdaq excel in providing liquidity, and more market capital is committed to Nasdaq stocks by multiple market makers," he added.
Trading and competition among unlisted number if market participants in Nasdaq market structure facilitates greater liquidity. In fact market makers provide Nasdaq with increased liquidity by competing with each other. The exchange provides liquidity in all its bull, bear and panic phase.
