Business Daily from THE HINDU group of publications
Wednesday, Aug 02, 2006
Business Daily from THE HINDU group of publications Wednesday, Aug 02, 2006 |
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Stock Exchanges Markets - Stock Markets Our Bureau
SPREADING WINGS: Mr Robert Greifeld, President & CEO, the Nasdaq Stock Markets Inc with Ms Charlote Crosswell, Head International, at a press conference held in Mumbai on Tuesday. - Paul Noronha
Mumbai , Aug. 1 , Nasdaq has raised the standards of listing on the exchange even further by initiating `Global Select Market' a new `market tier' which will require companies to adhere to the highest listing standards in the world, with measures including market value, liquidity and earnings. The new standards lay emphasis on the importance of corporate governance, said Mr Robert Greifeld, President and Chief Executive Officer, Nasdaq Stock Market Inc. It will be more difficult for companies to get listed, he added. But the stringent standards will provide security to investors. It will be aspirational for companies to reach the level of high standards required under Global Select Market, he said. "The regulatory race at the Exchange will never `lead to the bottom' (dilute norms)." Around 1,200 companies are currently part of this tier. Mr Greifeld said. Nasdaq recently acquired a 25.3 per cent stake in the London Stock Exchange. However, Mr Greifeld did not comment on whether the exchange will look at acquiring a stake in one of the major stock exchanges in India. It all depends on the strategy and proposal that the exchanges may offer, he said. Nasdaq is focusing on companies in emerging markets including India and China, which provide strategic and meaningful agenda. Mr Greifeld said that companies listed on that stock exchange would benefit from increased liquidity and volumes where intermediaries make less money and investors profit more. The pipeline of Indian companies waiting to be listed is very strong, he said. However, only seven Indian companies find their place on Nasdaq. Ms Charlotte Crosswell, Head, Nasdaq International said, "Most companies first get listed locally, and they also wait for the markets to pick up in their own country. Companies need to follow very high standards and bear costs to get listed on Nasdaq. Thus, the `wait and see' attitude of Indian companies has led to a slightly less number of companies listed on Nasdaq." Speaking about including non-IT companies on Nasdaq, Mr Greifield said, "IT companies constitute only 28 per cent of the total listed companies. Every major industry is well represented on the Nasdaq scrolls." Nasdaq is outsourcing the task of re-designing its `investor-facing' and `public access' websites to listed Indian companies. "Nasdaq has logged strong performances in the second quarter of the fiscal. Geopolitical trends (referring to the West Asian conflict) and economic upheavals have had little affect on the exchange," Mr Griefeld said.
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