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Tokyo SE eyes listings from Indian firms

Tokyo SE eyes listings from Indian firms
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First Published: Tue, Apr 15 2008. 11 56 PM IST
Updated: Tue, Apr 15 2008. 11 56 PM IST
Tokyo: The Tokyo Stock Exchange (TSE), facing a slide in listings by overseas firms, is eyeing yen-based depository receipts issued by Indian firms to help turn the tide.
The exchange last year allowed foreign companies to list Japanese depository receipts, and Japanese media report that Indian car maker Tata Motors Ltd will be the first to seek cash in this way from Japanese investors, after its purchase of Land Rover and Jaguar from Ford Motor Co. A depository receipt is a security backed by a company’s stock.
Trading securities in yen cuts trading fees for Japanese investors, encouraging them to buy foreign stocks locally rather than shop offshore, said Yasuyuki Konuma, a director at TSE’s listing department.
“India is our target because it’s economy is growing at an outstanding pace,” he said in an interview.
The number of foreign companies traded on the Tokyo exchange, the world’s second largest market, fell to 25 in December last year from a record 127 in 1991, exchange figures show, with trading value in foreign stocks collapsing by more than 90% in the past 16 years.
Companies that dropped TSE listings during that period include Westpac Banking Corp., Deutsche Bank AG and International Business Machines Corp.
“The exchange will be left alone if we remain domestic,” Konuma said.
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First Published: Tue, Apr 15 2008. 11 56 PM IST