If you are worrying about a possible capital flight from Indian stocks because of US sub prime mortgage problems, here’s some good news. Japanese investors will soon be able to buy Indian shares through the Tokyo stock exchange reports CNBC-TV18.
It’s Tokyoâ€™s business hot spot and known better for the seamless manner in which business blends with leisure. Welcome to Ginza district, which is home to Japanese financial giants – Daiwa Securities, Shinko Investment Trust, Shinsei Bank, and Nomura. Institutions that have invested over 10 billion dollars in India funds over the past 2 years. Officials here say India dedicated funds have been gulped down on the Tokyo stock exchange as fast as sushi
“Japanese companies have been setting up investment trusts for investing in Indian securities and equities and I have heard that they get sold out in 40 minutes, and the interest is definitely there from our side,â€ says Tohitsugu Shimizu, Senior Executive Officer, Tokyo Stock Exchange.
That ‘interest’ experts explain, means that another USD 10 billion is likely to flow to India from Japan over the next 2 years.
The Japanese have USD 120 billion of household savings, and retail and institutional clients are looking to diversify their investment portfolio, and therefore the Indian stock market is definitely blinking on their radar.
Japanese investors continue to demand more information about Indian companies and so work is in progress. The National stock exchange and the TSE are working out modailities to get Indian companies listed in Tokyo. Indian blue chips will be able to list here by early next year. That’s not all. The TSE and the NSE are working to launch Indian equity products like ETFs & Derivatives catering to Japanese investors.
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