Big opportunity? SEBI says India’s market dip opens doors for investors

Mumbai: India’s stock market valuations have turned “quite attractive” following a recent correction, according to Kamlesh Chandra Varshney of the Securities and Exchange Board of India, signalling fresh opportunities for foreign investors and global funds.

Speaking at a Russia-India Forum event at the National Stock Exchange of India, Varshney said the Indian equity market has entered a favourable zone for investment after a decline over recent months.

“The recent stock market correction, driven by global volatility and the ongoing West Asia conflict, has opened a strong investment window for foreign portfolio investors (FPIs),” he said, highlighting improved entry valuations in Indian equities.

Indian stock market correction boosts FPI interest

Benchmark indices have dropped more than 8 per cent this month, dampening short-term sentiment but making Indian stock market valuations more appealing for long-term investors. Analysts say the dip has enhanced India's investment opportunities, particularly for overseas funds seeking growth markets.

Varshney emphasised that regulators are streamlining processes to make it easier for foreign investors, including Russian entities, to access Indian markets. “We are working to simplify procedures and resolve technical issues to facilitate smoother FPI investments in India,” he noted.

Russian investors eye India equity market, IPO opportunities

Currently, 23 Russian entities, including banks and financial institutions, are registered as FPIs in India, with access to both equity and debt markets. Varshney added that Russian companies can also establish subsidiaries in India and raise capital through initial public offerings (IPOs).

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In some instances, India-listed subsidiaries have achieved higher valuations than their overseas parent firms, underlining India’s appeal as a global fundraising destination.

SEBI pushes tech-driven access to Indian markets

The SEBI official said the regulator is working with market participants to introduce technology-driven investment solutions, aimed at reducing costs and improving access to the Indian capital markets. This move is expected to widen investor participation and strengthen India’s position as a preferred investment hub.

At the same event, NSE Chief Business Development Officer Sriram Krishnan suggested that Russian companies could explore listing opportunities at GIFT City, while Russian banks may consider setting up operations in the emerging financial centre.

IANS