LSE starts new initiatives to woo Indian corporates

Our Markets Bureau

Mumbai, Nov 20: The London Stock Exchange (LSE) on Tuesday announced the launch of three new initiatives aimed at attracting increased participation, primarily from Indian technology and pharma-related companies. Currently, around 19 Indian companies are listed on the LSE and some 50 more companies are keen to list their shares on the LSE.

The two new initiatives are techMARK and techMark mediscience, two new nische segments within the LSE that exclusively targets technology and pharma-related companies listed, or to be listed on the LSE.

While techMARK is a sort of replica of USA’s Nasdaq, techMARK mediscience is the first of its kind in the world that targets companies in the areas of biotechnology, medicine, special pharmaceuticals, drug deliveries and diagnostics. The third one, introduction of retail depository receipts (RDRs), is common for companies listed (or to be listed) on all segments of the LSE, including the two new ones. The introduction of RDRs is mainly to attract more retail participation in trading of GDRs of overseas listed companies, as against only institutional participation in GDRs. LSE would allow conversion of GDRs into RDRs after meeting necessary procedural requirements and accounting norms. Announcing the launch of the three new initiatives in Mumbai on Tuesday, LSE CEO, Clara Furse said: "India is one of the very important markets for LSE as it has large potential of both pharma and IT companies." India and Japan are the first overseas countries where techMARK and techMark mediscience have been launched and LSE plans to take these new indicies to Israel also. Indian companies willing to list on the LSE can issue and list RDRs in London, instead of the Global Depository Receipts which were issued earlier by around 19 Indian companies. In a sector-wise listing, Indian technology companies would now be able to list their RDRs on techMARK - London’s technology market, and on the week-old techMark mediscience, said Ms Furse.

Indian corporates were more inclined towards listing on the Nasdaq because ADRs and ADSs were considered to be more liquid in nature compared to the GDRs which were meant only for institutional players.