Budget Reactions: Capital mkt proposals to deepen reforms, says KPMG

Uday Ved

Allowing Qualified Foreign Investors to access corporate bond market, simplifying IPO process and lowering their costs through IPOs in electronic form, wider shareholder participation in important decisions of the companies through electronic voting facilities and permitting two-way fungibility in Indian Depository Receipts are encouraging measures to deepen the reforms in capital market.

The FM has also proposed to simplify the IPO process and help companies to reach retail base in small towns by making IPO in electronic form compulsory in certain cases.  This is a welcome move and would reduce the complexities and costs associated with IPO process and help companies to tap the retail base more effectively.

Uday Ved