Indian Depository Receipts, the revised guidelines for which were formulated in mid-2007, have found no takers so far.
MUMBAI: Indian Depository Receipts, the revised guidelines for which were formulated in mid-2007, have found no takers so far. It may just turn out that NYSE Euronext, the world’s largest exchange group, will be one of the first to make use of this listing window available in India, for overseas companies.
NYSE Euronext chief executive officer Duncan L Niederauer said he could potentially list the exchange’s stock in other markets where companies listed on his exchange wanted to go.
“It wouldn’t shock me if US or European companies listed on NYSE Euronext have aspirations to list their stock in Asia, one of the hottest markets these days. We, as an exchange, can potentially list our shares in those markets in order to show the way to our companies, but there’s nothing imminent,” said Niederauer.
NYSE Euronext is currently listed on Euronext in Paris and New York Stock Exchange. It in turn has nearly 4,000 companies listed on it, across the six countries in which its family of exchanges is located.
“India, China, Japan and some ASEAN countries could be potential markets for our companies, and if our customers want help there, that can steer us as well,” said Niederauer, who visited Malaysia and Singapore before coming to India.
This is Niederauer’s first trip to Asia after taking over as CEO of NYSE Euronext in December, following predecessor John A Thain’s move as chairman and chief executive officer of troubled US investment bank Merrill Lynch.
“I treat this trip as an opportunity to do due diligence of these markets,” said Niederauer, who also has meetings lined up with National Stock Exchange (NSE) and Multi Commodity Exchange of India (MCX), in which NYSE Euronext has a 5% stake each.
“We’re not here to buy up exchanges. We’re here to forge alliances with them. We run a huge technology platform that could help many exchanges in the region (Asia) tide over their capacity issues. And we are open to only partner in technology initially, and maybe later translate that into an investment,” said Niederauer.
On when the NSE listing will take place, Niederauer said, “That’s Ravi’s decision.” Ravi Narain is the chief executive officer of NSE.
“Historically, stock exchanges were considered nationalistic utilities. However, now that their nature has changed to a dynamic industry, where there is rapid consolidation, it’s best to position them differently. It’s necessary that they have a public currency. If Ravi asked me, I would encourage him to list the exchange,” said Niederauer.
sanat_vallikappen@dnaindia.net
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