After luring the Indian majors in the private sector like Infosys Technologies for listing their stocks at its exchange, the technology stocks-led Nasdaq, a leading stock exchange in US, is now trying to woo the government-owned entities.
"We are trying to impress upon the central government to list some of the public sector units (PSUs), which are under the divestment mode," Patrick Sutch, the vice-president and managing director (Asia Pacific) of Nasdaq, told media persons in Hyderabad.
Nasdaq is also talking to many other Indian companies including a few city-based companies for listing on the bourse.
"Our exchange offers better liquidity than competitor New York Stock Exchange because we have the market movers concept who provide liquidity even in a dull market," Sutch claimed.
One can easily observe that the Indian stocks like Sify, rediff.com and Infy enjoy better liquidity compared to Satyam, MTNL and VSNL which are traded on the New York Stock Exchange, he said.
However, he declined to name the Indian companies which are opting for Nasdaq listing, citing non-disclosure agreements with these companies as a reason.
"It takes a minimum six months for a company to get listed on Nasdaq, hence it would be by the end of Q4 this fiscal or the early Q1 of next fiscal that you can see some of these companies getting listed on the exchange," Sutch said.
"We expect at least 20 to 30 Indian companies to get traded on the exchange in the next two years," he added.
According to him, Nasdaq has recently filed a petition with Securities Exchange Commission for a rule making to repeal Rule 500 of the NYSE. Rule 500 imposes constraints on companies seeking to delist their securities from the NYSE.
As the commission knows, no other exchange imposes limitations on delisting beyond a simple board resolution. Nasdaq imposes no requirement at all, he said.