MUMBAI: Market watchdog Sebi on Tuesday defended the higher PE multiples of 22.2x that the domestic market commands over its peers due to the rising optimism and trust that foreign investors have in the country.
Addressing a CII-organised seminar on corporate governance here, Sebi chairperson Madhabi Puri Buch said our markets are commanding valuations of 22.2x earnings, which is higher than not only the averages of the world indices but also when compared with various nations due to the trust in our market and also the country as a whole.
“At 22.2x the price to earnings multiples. Yes, some people say we are an expensive market but still why is the investment coming? Because this is a reflection of the optimism and the trust and faith that the world has in India today that we are commanding the kind of multiples in our markets,” Buch said.
She further said this trust has been earned by hard work and consistent regulations. "This has the world giving us centre stage today, as against the past when we used to sit at the last of the global stage. This has been more visible today as the world was seeking our advice and help in foolproofing their market infrastructure," she said.
Listing out some the salient gains she cited the T+1 settlement which is a global first for any large market and this has been further elevated by the T+0 settlement from last week on an optional basis for 25 stocks.