MUMBAI: India would need to raise about $100 billion in equity capital every year compared with $10-20 billion that it had been raising, to finance the country’s economic growth, said Ashishkumar Chauhan, executive director of the Bombay Stock Exchange.
Yet, this task would be very challenging as the fund raising so far has fallen short of his figure over the past five years, Chauhan said at a seminar on capital markets organised by the CII.
At the same conference, the joint secretary at the ministry of finance, Manoj Joshi said the Reserve Bank of India was working on functional guidelines for banks and financial services companies to operate in the International Financial Centre. A similar regime is being worked on for the insurance sector, he said.
The Securities and Exchange Board of India last week issued guidelines for companies that could operate out of the IFC. Capital market experts say the IFC could fetch the country about $100 billion a year once it becomes functional and provides all key infrastructure facilities comparable with Singapore and Dubai.
The budget for 2015-16 has a clear focus that the government will increase investment in Infrastructure and through the budget has enabled private operators to increase infrastructure investment, said Joshi. India needs to develop its local bonds market. Joshi also stressed on the need to develop long term hedging market as also the bankruptcy laws, for which a committee is already working rapidly.
Nimesh Kampani, chairman of JM Financial Group, too stressed on the need for development of markets to develop bonds, currencies and derivatives.