Oct 29, 2024

Indian stock market gears up for leap: NSE CEO В IndiaвҖҷs NSE CEO cited the lower entry barriers and an influx of retail investors for startupsвҖҷ IPO rush in India By NSEгҖҖCEOгҖҖAshishгҖҖChauhanгҖҖspeaksгҖҖduringгҖҖanгҖҖinterviewгҖҖwithгҖҖTheгҖҖKoreaгҖҖEconomicгҖҖDailyгҖҖinгҖҖMumbaiгҖҖonгҖҖOct.гҖҖ22,гҖҖ2024В IndiaвҖҷs stock market is gearing up for a leap thanks to an influx of retail investors seeking better returns and the lower barriers for small companies to join the market, said the South Asian countryвҖҷs major stock exchange chief. вҖңEven companies and startups which do not get funding from venture capitalists also end up listing directly sometimes,вҖқ Ashish Chauhan, managing director and chief executive of the National Stock Exchange of India (NSE), said in an interview with The Korea Economic Daily in Mumbai last week. Of last yearвҖҷs 242 initial public offerings on the NSE bourse, 182 cases, or 75%, were startups and small and mid-sized enterprises (SMEs). Founded in 1992, the NSE has emerged as IndiaвҖҷs largest IPO market this year, according to the NSE CEO, citing the lower entry barriers and increasing retail investors as the main reasons for the countryвҖҷs bullish stock and IPO markets. В вҖңWe have been able to develop smaller investment bankers across India. We are able to take very small companies to the market with the full prospectus being madeвҖҰ. So the cost of raising funds in a way is very low for small companies,вҖқ said Chauhan. NSEВ вҖңWe have raised $3 billion for Hyundai Motor but also there are companies which have raised even a million and a half dollars this year.вҖқ The NSE comprises two markets вҖ“ the main board for large companies and the small board for SMEs. MOM-AND-POP INVESTORS WILL PROP UPВ Chauhan pictured a rosy outlook for IndiaвҖҷs stock market as more retail investors are expected to join the equity market to build wealth more rapidly. Mom-and-pop investors have sharply increased during the COVID-19 pandemic from 31.0 million in 2020 to 59.4 million in 2022. They topped 100 million in August. вҖңWe will have probably 500 to 600 million accounts (or people) вҖҰ over the next 20 to 25 years,вҖқ said Chauhan, expecting more retail investors will join the stock market for a while driven by India's Prime Minister Narendra Modi's aggressive economic expansion policy. вҖңThey (retail investors) now want to invest in the stock market in addition to the fixed deposits or gold or real estate. So it's also an increasing sign of prosperity.вҖқ HyundaiгҖҖMotorгҖҖGroupгҖҖChairmanгҖҖChungгҖҖEuisunгҖҖ(secondгҖҖfromгҖҖleft)гҖҖandгҖҖAshishгҖҖChauhanгҖҖ(secondгҖҖfromгҖҖright),гҖҖCEOгҖҖofгҖҖNationalгҖҖStockгҖҖExchangeгҖҖ(NSE),гҖҖcelebrateгҖҖHyundaiгҖҖMotorгҖҖIndia'sгҖҖlisting He invited more foreign companies with operations in India to go public on the Indian stock market like Hyundai Motor Co. В It became Hyundai Motor Group's first overseas entity to list on a foreign bourse. вҖңWe have a lot of foreign-origin companies whose subsidiaries have been listed in India for very long even before India became independent,вҖқ said Chauhan. вҖңWe don't differentiate between a company coming from abroad or from within as far as meets all criteria.вҖқ The NSE is one of the countryвҖҷs two primary stock exchanges alongside BSE founded in 1875. Chauhan took the helm of the NSE in July 2022. Before joining the NSE, he led the BSE from 2012 to 2022. Write to Byeong-Hwa Ryu at hwahwa@hankyung.com Sookyung Seo edited this article. 3 Min read 2 Min read 4 Min read 3 Min read 2 Min read 1 Min read