There is a stock market romance in the air! Suitors from New York search for and court top companies all over India! NASDAQ has launched a frontal attack to get listings from the country. NASDAQ has an Indian office in the garden city of Bangalore, home to such stock market legends as Infosys. Having such comprehensive resources at ground zero is a big plus for NASDAQ, because there are so many accounting and legal bridges for Indian companies to cross before they can list on a U.S. stock market.
Statutory accounting rules in India differ from the Generally Accepted Accounting Principles or GAAP, which prevail in the United States. NASDAQ helps companies in India to acquire the right software, and to develop internal processes which help them comply with accounting regulations both in India and the U.S.
The Public Company Accounting Reform and Investor Protection Act of 2002, popularly known as the Sarbanes Oxley law, is another stumbling block for Indian companies which seek listing on a U.S. stock market, because India does not have comparative requirements as yet. NASDAQ in India renders invaluable service in helping local organizations understand the implications of such legislation, and to tailor their reporting accordingly.
NASDAQ seems to have stolen a march over its rivals by positioning itself as a kind of Guru for domestic companies in India which need funds from the U.S. stock market segment. This goes well with NASDAQ’s deserved image as a pioneer in electronic stock market operations, something which matters a great deal for a country so steeped in Information Technology.
NASDAQ’s initiative with respect to India matters for retail stock market investors in the U.S. because this is a country with as much potential as China, and it is a democracy to boot. Banks and other financial institutions in the U.S. have reaped huge profits by participating in the Indian stock market. NASDAQ, with its listing of Indian companies, will help small American investors enjoy this bull run as well!
