See scope for more int'l listings of Indian cos: NYSE

Excerpts from What's Hot on CNBC-TV18 Watch the full show » Nifty BSE | NSE 13/02/12 Are Mutual Funds betting on Nifty?

The NYSE Group, which offers the most liquid listing platform in the world is hoping to woo more Indian companies. There are 12 companies listed on the NYSE and one on the Euronext. Compare this to the fact that this year alone 13 companies have listed on the NYSE.

In an interview with CNBC-TV18, Ronald Kent, Executive VP and Head of International listings, NYSE Euronext discussed the opportunities for Indian companies and the road ahead for the markets.

Here is a verbatim transcript of the exclusive interview with Ronald Kent on CNBC-TV18. Also watch the accompanying video.

Q: How bad has the economic crisis been in the past 75 years? How has it impacted the desire of Indian companies to list in the NYSE?

A: I think there is a short term answer to that and a longer term answer. I think if you look at what is happening around the world, one of the things that will come out of it as you pointed out is the worst financial crisis in 75 years is a real move by investors to try and sort out quality and to ensure that the companies they are investing in are the absolute best of the best.

I think in that context for Indian companies which are emerging as world class and other Indian companies to try and respond to the strength and the growth of the Indian domestic economy looking for capital to create jobs and other opportunities in India, they are going to be looking for world class markets to raise that capital. So I think in the medium term that provides a lot of opportunity for leading markets in the US and Europe to be very helpful to Indian companies.

In the short term i.e. right now, there is a lot of froth still in the market in India and I think you see that everyday more frequently than I do and Indian companies are able to satisfy their requirements in the local market. My question I think is, a broader one, is that if I look at the needs that Indian companies will have in the coming years, I think there will be space for international capital as well as for domestic capital.

Q: Let me ask you two news based questions. One is on Satyam issue because we understand that the NYSE has warned of a possible delisting in case Satyam cannot comply with filing of its financials. Where does that situation stand at this point and are you looking at any kind of grace period given the nature and the magnitude of the scam?

A: I can't answer that question very explicitly for reasons I am sure you will appreciate. The matter in relation to Satyam is under close investigation by the authorities both here in India and of course in United States, both markets that Satyam is listed in. We are very confident that the regulators will come to an appropriate solution that will help us both, with the NYSE and with the exchange here. I am afraid I cannot say more at this time.

Q: Let me try and get you to say a little bit more perhaps on a possible enhancing of your stake or the NYSE's stake in the NSE as well as the MCX. Is that something that you could look at the NYSE at this point in time?

A: I am afraid I have to say the same thing. Matters of M&A, as you will appreciate, we simply cannot comment publicly.

Q: Where do you see global equity markets because in India we have seen a very sharp rally we are seeing the other global markets rallying as well how do you see the global equity markets in the short to medium term?

A: The markets have had a fantastic run. I think India, if I am right, is number one right now in terms of its recovery from the lows in March. If it is not number one it is pretty close to that. It just feels a little bit frothy. If I look at other markets around the world in the last few weeks, I have certainly seen a number of IPOs come to the market and get priced towards the bottom-end of the range and trade down in the after market.

Just to give you some examples as far apart in Australia last week, in Europe this week and in the US last week, those are the indicators that I have witnessed.

So, I think right now investors around the world are pulling back and are asking themselves the question how much more is there left to run or how is the economic recovery going to continue, is it really going to come through strongly or does government start to have to switch off the priming pump and pull back on some of this quantitative easing and start to get taxpayers around the world to actually start to pay the bill for this stimulus that has happened, and what is the outlook then for the equity markets and the economy generally. So, I would be prudent at this stage.