$40 trillion m-cap! What Ashishkumar Chauhan says on India opportunity, NSE IPO

Ashishkumar Chauhan, Managing Director & CEO at NSE on Saturday said there were some issues at the exchange and the markets regulator Sebi had apprehensions, but added that his exchange was trying to meet Sebi expectations, as number of stock investors look to double or triple going ahead from the current 7.5 crore-mark.

"For that, whatever confidence is required by Sebi in terms of NSE processes, procedures, technology and its intensions, the day Sebi becomes more comfortable it will tell us to move forward and we will apply for the NSE listing," he said at BTIndia@100.

Once the Sebi approval comes in, the initial public offer (IPO) process is fairly mechanical and it should not take more than 3-6 months, Chauhan said while noting that he led many IPOs in his career including that of BSE's.

“As and when Sebi becomes comfortable and tells us to apply for IPO, we will apply. Once the approval comes in, the IPO process will take 3-6 months at max,” he said adding that getting a company listed improves the corporate governance, as investors keep asking tough questions.

Chauhan said the NSE IPO is the second-most query that he receives after "Where is Nifty headed in the next one year". 

Speaking at BTIndia@100, Chauhan added that the market capitalisation of the Indian equity market has surged more than 80 times in rupee terms since 1994. He further added that the market value of listed companies in dollar terms has increased to $3.7 trillion today from $120 billion in 1994, indicating a rise of over 30 times during the same period.

“Stock markets have helped creating jobs and wealth in India,” Chauhan said adding those days 20-50 lakh people used to invest in the stock market. Today, 7.5 crore unique PAN numbers are registered with NSE.

He further said that one out of every three households directly or indirectly are connected with markets. There is no country in the world except India, where per capita income is just $2,400 and has such a market, he said.

“In fact, there is no country with $20,000 per capita income has such a market like India,” Chauhan said if you have to do religion you should have money. That’s why despite all the importance being given to the banking system, the stock markets are one and a half times or more than the asset size of the entire banking system.

Chauhan further added that India has a humungous opportunity to grow in the next 25 years. On the conservative side, the market valuation of India-listed firms can easily touch $20 trillion going ahead. At the same time, there are chances that India’s m-cap may touch $40 trillion.

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