Mumbai: India’s stock market has become an attractive destination for foreign investors after the recent correction, a senior official of the market regulator said, highlighting fresh opportunities for global players, including those from Russia.
Kamlesh Chandra Varshney, whole-time member of the Securities and Exchange Board of India, said valuations in the Indian equity market now look “quite attractive” following a decline over the past few months.
“The correction, which has been influenced by global volatility and the ongoing West Asia conflict, has opened up a strong investment window for foreign portfolio investors (FPIs),” he noted.
Speaking at a Russia-India Forum event held at the National Stock Exchange of India here, Varshney said there is a “tremendous opportunity” to invest in Indian equities at current levels. Benchmark indices have fallen more than 8 per cent this month, impacting investor sentiment but also improving entry valuations.
“The regulator is working on clarifying procedures and resolving technical issues to make it easier for Russian FPIs to invest in India,” he added.
Currently, 23 Russian entities, including banks and financial institutions, are registered as FPIs in the country and can invest in both equity and debt markets.
Varshney also highlighted that Russian companies can set up subsidiaries in India and raise funds through initial public offerings (IPOs).
He pointed out that in some cases, subsidiaries listed in India have achieved higher valuations than their parent companies overseas, making India an attractive fundraising destination.
“SEBI is working with market participants to develop technology-driven solutions that will make it easier and cheaper for investors to access Indian markets, thereby widening participation,” Varshney mentioned.
At the same event, NSE’s chief business development officer Sriram Krishnan suggested that Russian companies could also explore listing opportunities at GIFT City in Gujarat, while Russian banks may consider setting up operations in the financial hub.
(IANS)
