India’s stock market has become more enticing to foreign investors following a recent downturn, as stated by a senior official from the market regulator. Kamlesh Chandra Varshney, a member of the Securities and Exchange Board of India, highlighted the fresh opportunities available for global players, including those from Russia. The official emphasized that valuations in the Indian equity market now appear attractive after a period of decline influenced by global volatility and the West Asia conflict.
Varshney, speaking at a Russia-India Forum event at the National Stock Exchange of India, noted that the correction has created a favorable investment window for foreign portfolio investors (FPIs). Despite a more than 8% fall in benchmark indices this month affecting investor sentiment, it has also improved entry valuations. The regulator is actively working on streamlining procedures and addressing technical issues to facilitate easier investment by Russian FPIs in India.
Currently, 23 Russian entities, including banks and financial institutions, are registered as FPIs in India, allowing them to invest in both equity and debt markets. Varshney also highlighted the possibility for Russian companies to establish subsidiaries in India and raise funds through initial public offerings (IPOs). He pointed out instances where Indian subsidiaries listed on the stock market achieved higher valuations than their parent companies abroad, making India an attractive fundraising platform.
Furthermore, Varshney mentioned that SEBI is collaborating with market participants to develop technology-driven solutions that will enhance accessibility and affordability for investors looking to engage in Indian markets, thereby broadening participation. At the same event, NSE’s chief business development officer Sriram Krishnan suggested that Russian companies could explore listing opportunities at GIFT City in Gujarat, while Russian banks might consider establishing operations in the financial hub.
