London Stock Exchange (LSE) aims to introduce Specialist Fund Market (SFM) to Indian issuers. The new market will be open for admissions from November, 2007.
Explaining SFM, Ibukun Adebayo, senior manager-India & International, LSE told reporters said that SFM is a regulated market for highly specialised investment entities that seeks to raise funds from professionals and institutional investors.
The norms for participating in the SFM is comparatively more liberal than Alternative Investment Market (AIM). A sponsor is not required for SFM and the entity need not show a three-year track record like it is required for AIM. “The SFM market is largely meant for institutional investors”, he said.
Adebaya said that the SFM will provide sufficient flexibility for specialist vehicles. “Through SFM, Indian issuers of non-conventional funds like private equity funds, complex property, infrastructure funds and investment structures with special class securities like non-voting shares will have access to a dedicated market to suit their needs”, he said.
Expecting a good response from the Indian players for the SFM, Adebaya said that all regulatory mechanisms are in place for the SFM. “SFM will allow major players to continue to invest in important sectors like infrastructure and real estate in India”, he said.