Mumbai, July 22: The Singapore Exchange (SGX) has opened a liaison office in India to help domestic companies get listed and raise capital in that nation.
The office, located in Mumbai, will provide information and serve as a communication channel to support fund-raising by Indian companies in Singapore. Funds can be raised through the listing of stocks, bonds, real estate investment trusts, business trusts, or depository receipts.
The development comes days after finance minister Arun Jaitley made it easier for domestic companies to raise funds abroad. In the budget for 2014-15, Jaitley extended the liberalised facility of 5 per cent withholding tax to all bonds issued by Indian corporate houses abroad across all sectors. He also relaxed the ADR/GDR regime to allow the issue of depository receipts on all permissible securities.
The exchange has appointed Neena Prasad as its chief representative in India.
“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 chief executive officer Magnus Bocker said in New Delhi today.
Indian issuers have raised $60 billion in bonds, which are now listed on the SGX, making India the third-largest issuer of SGX-listed bonds. These issuers cover sectors that include banking and financial services, energy and commodities, property, healthcare, utilities, telecommunications and transportation.
According to the exchange, around 80 per cent of listed international bonds by Indian issuers are listed on the SGX. Among the Indian firms listed on the bourse are Ascendas India Trust, Indiabulls Properties Investment Trust, Religare Health Trust and Berger.
According to the SGX, the India office will strengthen its partnership with the NSE that began in 2000 when the two bourses collaborated to develop the international futures market. Besides, in 2007, the SGX picked up a 5 per cent stake in the BSE.
“We will continue to strengthen our partnership with the NSE as we grow the Nifty franchise internationally. As a stakeholder in the BSE, we will support it by bringing efficiency with new initiatives and IPOs,’’ Bocker said.