NSE looks to enhance focus on equity, debt; lower cost of raising funds

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New Delhi | Published: August 8, 2018 4:27:28 PM

The National Stock Exchange (NSE) plans to focus on equity, debt and interest rate futures segments for business expansion as well as on reducing the cost of raising funds for companies, a senior official said today.

NSE looks to enhance focus on equity, debt; lower cost of raising funds

The National Stock Exchange (NSE) plans to focus on equity, debt and interest rate futures segments for business expansion as well as on reducing the cost of raising funds for companies, a senior official said today.

Equity market penetration has the potential to grow and the bourse intends to concentrate on segments like debt, interest rate futures and commodity market for expanding its business, NSE chairman Ashok Chawla told reporters here at the exchange’s silver jubilee celebrations. On the occasion, NSE Managing Director and Chief Executive Vikram Limaye said there is a need to broaden the base of retail investors and enhance the participation of institutional investors. On the priorities, Chawla said the exchange will focus on reducing the fund raising costs for companies and also looks at organic and inorganic growth opportunities.

Stating that the focus is not on equity alone, Limaye said, “Be it debt or equity, credit risk or commodity risk, we will focus on all.” “We are focussing on Fintech solutions in terms of getting retail investors as their participation is very low in the Indian capital markets as compared to other developed nations,” he added. Equity holding in India is at 5 per cent of total household savings, which is much less than 30-40 per cent average in developed markets. Besides, participation of institutional investors needs to be enhanced and regulatory changes are required for the same. He further said the exchange is keen on spotting opportunities in other overseas markets.

“NSE is working to upgrade technology and strengthen its surveillance system and (has) a holistic view on risk management system,” he added. Limaye expects to see market development expediting over the next two-three years. “A lot can be done in terms of domestic and global collaboration,” he said. Former Prime Minister Manmohan Singh, Road Transport and Shipping Minister Nitin Gadkari, Delhi Lieutenant Governor Anil Baijal and Niti Aayog Vice Chairman Rajiv Kumar also attended the exchange’s silver jubilee celebrations. President Ramnath Kovind, who was scheduled to attend the event, opted out citing his busy schedule. A message by Kovind was read out at the event.

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