Singapore Exchange (SGX), on Tuesday, announced opening of a liaison office in India to attract listings and enable domestic companies to raise capital from Singapore.
“Our India office will enable us to better support Indian companies seeking to raise capital as India is one of the world’s fastest growing economies with significant funding needs to support its growth and development,’’ SGX CEO Magnus Bocker told reporters here.
At a time when the Narendra Modi-government is also seeking to allow more companies to raise funds abroad, the SGX’s office will provide information and act as a communication channel to support raising of capital by Indian companies in Singapore.
“We look forward to working with partners in India to assist companies in reaching out to the international investment community,’’ he added.
Such capital raising could be achieved through listing of stocks, bonds, real estate investment trust and depository receipts. The exchange has appointed Neena Prasad as its Chief Representative in India.
Indian issuers have already raised about $60 billion in bonds listed on SGX, making India the third largest in the bourse’s bond segment.
Five Indian companies are already listed in SGX, including Ascendas India Trust since 2007, Indiabulls Properties Investment Trust and Religare Health Trust.
Talking on outlook for the country, Mr. Bocker said, “We have a more positive view on India, than six-months ago.’’
He said post the elections, they now expected policy certainty, which would eventually help corporates.
“The biggest impact, I think, is that there is going to be policy certainty. That is the single largest help. You can take each policy and argue whether that is the best policy or not but that is not the point as much as there is certainty around policy,” he said, adding that, “As long as you have certainty, people will know how to operate within that policy and then make their investments or choices.”
SGX is among the Asia’s most international listing venue with more than 40 per cent of listed companies originating outside from Singapore.
Nearly 800 companies and about 1,500 bonds from 36 countries are listed on SGX.