Why invest in Indian capital markets?

• Business Week says that of 100 emerging market firms which are rapidly globalising 21 are Indian firms.
• Economists project India to become the third largest economy in the world by 2040.
• Indian capital market regulator has acquired international credibility in the least possible time.
• India has a disclosure based regime of regulation.
• Disclosure and Investor Protection guidelines available.
• India’s accounting standards are closer to international standards .
• India has a well laid down legal framework.
• India has T+2 rolling settlement as opposed to T+3 in NYSE.
• In India the transactions are totally electronic on a real time basis.
• India has several protective safeguards for the retail investor such as grading system of public offering, retail quota at 25 per cent etc.
• SEBI has made corporate governance guidelines mandatory for listed companies
• Mutual funds are permitted to invest overseas up to $3 billion
• Margin trading is in vogue
• Corporatisation and demutualization of stock exchanges on card - foreign participation in bourses permitted.
• As an integral part of risk management trading and exposure limits, var margins and mark to market margins are in vogue.
• Clearing houses and corporations with novation in place.
• Almost 100 per cent risk free electronic settlement through depository system .
• SEBI has a surveillance and enforcement system in place.
• India to become a regional hub for bond trading once a free financial zone is set up.
• India to set up a world class National Institute for Securities Markets with 7 business schools under its fold .