Singapore invites Indian firms to list on SGX


The Singapore Stock Exchange (SGX) is inviting Indian companies to list on their exchange and raise capital. “SGX can play a role in providing Indian companies with access to capital markets overseas that will be complementary to that available locally. This will expand the capital pool to the benefit of companies involved.

The funds raised can then be channeled back to India to support its infrastructure and business development, and contribute to India’s overall economic growth,” Magnus Bocker, chief executive officer, SGX said while announcing the plan to open a liaison office in India on Monday.

The SGX office in India will provide information to support capital raising by Indian companies in Singapore. Such capital raising can be achieved via listing of stocks, bonds, Real Estate Investment Trusts, business trust or depository receipts. Bocker of SGX says, “The opening of our Indian office re-affirms SGX’s long-standing commitment to India. We will continue to strengthen our partnership with NSE as we grow the Nifty franchise internationally. As a stakeholder in BSE, we will support the exchange by bringing efficiency with new initiatives and IPOs.”

There are already five Indian companies listed on the exchange. These include companies like Ascendas India Trust, Indiabulls Properties Investment Trust and Religare Health Trust.

The Indian government has targeted for $ 1 trillion worth of infrastructure projects until 2017 with half of this investment coming from private-public sector partnerships. There is also a need for funding for business expansion and overall economic growth.

There are around 800 listed companies which trades on SGX. “All the companies which are listed on SGX are highly liquid as compared to over 5,000 companies listed on the Bombay Stock Exchange,” says Bocker.

Singapore is the largest source of foreign direct investment into India for 2013-14. According to the latest data compiled by India’s Department of Industrial Policy and Promotion in May 2014, FDI inflows from Singapore added up to nearly $ 6 billion in 2013-14 compared with $ 2.3 billion in the previous year.

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