Indian markets can raise USD 100 bn a year: BSE CEO

New Delhi, Mar 19 (PTI) Indian stock market can raise USD 100 billion of capital annually going ahead to help meet the country's funding needs, top bourse BSE's CEO Ashish Chauhan has said while peggi

New Delhi, Mar 19 (PTI) Indian stock market can raise USD 100 billion of capital annually going ahead to help meet the country’s funding needs, top bourse BSE’s CEO Ashish Chauhan has said while pegging the amount estimated to be raised through his exchange alone at USD 30 billion this fiscal.

He said the capital markets have the potential to contribute nearly half of the estimated USD 2 trillion of funding required over the next ten years for infrastructure building, setting up of new businesses, expansion of existing businesses, creation of jobs and other requirements to drive India’s growth story.

In an interview to PTI, Chauhan said this target is “completely doable” given the high savings rate of Indians and what is required is channelising of these savings into financial market instruments.

Chauhan said the debt market in India would need to play a much larger role than equities, which was the case globally, for such high levels of fund raising activities, while he asserted that the necessary infrastructure and technology is there already in place for meeting these targets.

The chief of Asia’s oldest bourse, who recently steered a highly successful IPO of the exchange that was pending for almost a decade, said one of the biggest functions for the markets is capital formation.

“India will need USD 2-2.5 trillion of funds over the next ten years and for that the exchanges would also have to stand up and get counted. India cannot raise funds only through banks.

“So, if half of the funds are raised through markets and half through the banks, then a trillion dollars would have to be raised through the exchanges, whether from the GIFT City (international financial centre) or from the domestic exchanges.

“Raising USD 1 trillion over a ten-year period would mean nearly USD 100 billion a year. As of now, BSE alone is helping raise from equity and debt put together, nearly USD 28-30 billion for the current fiscal. It’s not yet close to USD 100 billion, but that target is doable,” he said.

Chauhan said there is also a need to ensure that the entire paraphernalia, in terms of peripheral systems, also keeps pace.

Asked whether there was the right kind of infrastructure for such kind of fund raising activities, he replied in affirmative.

Talking about the availability of such huge amount of funds in the country, he said India’s GDP is around USD 2.5 trillion and India saves around 35 per cent. More

This is published unedited from the PTI feed.