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

Q: How good is the appetite out there? Do you think that you could see more of a flow of ADSs, and GDRs out there—I am not yet talking about QIPs, but, is there an appetite for ADSs and for what kind of companies?

A: We believe obviously there is plenty of liquidity in the global markets. The investor appetite increases everyday for emerging market risk. India remains very much part of the sort of the Brazil, Russia, India and China (BRIC) story which has seen a lot of interest over the last three to four months. So I would suspect there will be a few more large deals that will come through and will get taken up quite well.

Q: Perhaps you could shed some light as you have been around in this business for a long time. If I invested in the GDR, foreign currency convertible bonds (FCCBs) and I am talking as an investor, I am basically selling them at a discount. If I bought in the London AIM, I am sitting with huge losses. If I bought a Singapore-based REIT, I am sitting with huge losses. Can you tell me, what's the motivation for these foreigners to continue to buy because when they finally end up selling, it seems to be at a big discount or at big losses? Exactly, what makes them continue to come back again and again and take a loss?

A:  I can only suggest it is the interaction of the India story. Obviously, the liquidity that you have onshore with the underlying shares is a lot more, so exits and entries are a lot easier. The appetite frankly for India risk remains very high and that’s really what I would suggest is driving some of this. The equity business is on some level a simple business. It is very important to be picking the right names, picking the right stories. I don’t think we are in that sort of euphoric phase that we saw in the fourth quarter 2007 where really anything sold at any multiple. As you start what might be the next phase of sort of a upswing, call it a bull market or whatever you want, you start off by picking some core names, some core management teams and hopefully, if you stay with that story which is quality at the right price, you won’t get burnt and I think Mahindra Holidays that we did last night is a good example of that.