Effective stock mkt regulation: India slips in
ranking
08/09/2014 15:24
Indian capital markets may be riding high on positive investor sentiment, but the latest report by World Economic Forum (WEF) shows that the country has plunged 35 places to the 62nd rank in terms of effective regulation of stock exchanges. Last year, the country ranked 27th for effective regulation and supervision of securities exchanges. South Africa is on the top, followed by Finland, Hong Kong SAR, Luxembourg and Singapore in this category, the WEF report says. Besides, neighbouring countries Pakistan and China are also placed at better positions than India on the parameter, at the 51st and 58th spots respectively. The findings are part of WEF's Global Competitiveness report 2014-15, where India has been ranked among a total 144 countries across the globe. The performance review was based on 12 pillars including development of the financial markets. A value of 1 for regulation of exchanges implies 'not at all effective' while 7 is for 'extremely effective'. Meanwhile, the country has also slipped to the 39th place from 18th in terms of easiness for companies to raise money by issuing shares on the stock market, the report said. Hong Kong SAR followed by Taiwan, China and South Africa were found to be countries where raising money through equity markets was the easiest. Meanwhile, India has shown improvement with regard to strength of investor protection. The country has been ranked at 34th place along with Pakistan, Montenegro and Chile, among others, in the report. Last year's WEF report had ranked India 41st with regard to 'strength in investor protection'. A host of positive developments on domestic as well as global front has helped Indian capital markets go on a winning spree in recent times. According to a report by Bank of America-Merrill Lynch, the Sensex is the best performing index among major global markets so far in 2014 and is expected to double over the next four years. Continuing their record setting spree, both the benchmark indices - Sensex and Nifty - surged to their historic intra-day peaks of 27,225.85 and Nifty 8,141.90 last week on aggressive buying as a result of strong foreign capital inflows on the back of robust economic growth.
08/09/2014 15:24
Indian capital markets may be riding high on positive investor sentiment, but the latest report by World Economic Forum (WEF) shows that the country has plunged 35 places to the 62nd rank in terms of effective regulation of stock exchanges. Last year, the country ranked 27th for effective regulation and supervision of securities exchanges. South Africa is on the top, followed by Finland, Hong Kong SAR, Luxembourg and Singapore in this category, the WEF report says. Besides, neighbouring countries Pakistan and China are also placed at better positions than India on the parameter, at the 51st and 58th spots respectively. The findings are part of WEF's Global Competitiveness report 2014-15, where India has been ranked among a total 144 countries across the globe. The performance review was based on 12 pillars including development of the financial markets. A value of 1 for regulation of exchanges implies 'not at all effective' while 7 is for 'extremely effective'. Meanwhile, the country has also slipped to the 39th place from 18th in terms of easiness for companies to raise money by issuing shares on the stock market, the report said. Hong Kong SAR followed by Taiwan, China and South Africa were found to be countries where raising money through equity markets was the easiest. Meanwhile, India has shown improvement with regard to strength of investor protection. The country has been ranked at 34th place along with Pakistan, Montenegro and Chile, among others, in the report. Last year's WEF report had ranked India 41st with regard to 'strength in investor protection'. A host of positive developments on domestic as well as global front has helped Indian capital markets go on a winning spree in recent times. According to a report by Bank of America-Merrill Lynch, the Sensex is the best performing index among major global markets so far in 2014 and is expected to double over the next four years. Continuing their record setting spree, both the benchmark indices - Sensex and Nifty - surged to their historic intra-day peaks of 27,225.85 and Nifty 8,141.90 last week on aggressive buying as a result of strong foreign capital inflows on the back of robust economic growth.
