Search the Internet          Tips  Sites: Finance, Investment

LSE inks MoU with Nasscom

The London Stock Exchange is talking to 50 more companies to get them listed on the bourse, LSE's chief executive Clara Furse said on Friday.

So far as listing of IT companies on LSE is concerned, the bourse on Friday entered into an agreement with Nasscom to promote the ''London Advantage'' among these corporates. At present, three Indian companies- SSI, Hexaware and HFCL are listed on LSE.

The memorandum of understanding, signed by Furse and Nasscom President Kiran Karnik in New Delhi commits the two entitities to share research and market data, organise joint marketing events and seminars and work together to promote the bourse.

Disclosing that 18 Indian companies are listed on LSE, twice those on the New York Stock Exchange and Nasdaq combined, Furse said her bourse is talking to 50 more companies to get them listed on LSE.

The companies are a mix of old and new economy corporates, she said, before refusing to divulge further details.

When asked if LSE would set up a similar arrangement with other industry associations to market itself among old economy companies, she said there are no such plans in the immediate future but something could be explored in years to come.

Furse said Indian companies registered turnover Rs 35,000 crore (Rs 350 billion) last fiscal at LSE, up 13 per cent over the corresponding period of the previous financial year. The exchange has India Desk, a pool of experts on Indian companies.

Besides, the bourse is the largest pool of resources for overseas companies. As much as $2.4 trillion were transacted in overseas shares for the first six months of this fiscal, which is three times of NYSE, Furse said.

As many as 75 per cent of all western IPOs raised are listed on the LSE, she added.

Karnik noted that if the target of $50 billion IT exports by 2008 is to be achieved, stock markets will have to be tapped. The IT industry will have to look at venture funding as well as financing of more mature companies, he added.

Britain is the second largest destination for IT products after the United States, accounting for $1 billion of the total $7.8 billion IT exports last fiscal.

UNI

ALSO READ:
More Money Headlines

Tell us what you think of this report