Stock market regulation: Even Pak and China rank higher than India, shows WEF report

ndian capital markets may beriding high on positive investor sentiments, but the latestreport by World Economic Forum (WEF) shows that the countryhas plunged 35 places to 62nd rank in terms of effectiveregulation of the stock exchanges.

The country, last year, stood at the 27th spot foreffective regulation and supervision of securities exchanges.

South Africa is on the top followed by Finland, Hong KongSAR, Luxembourg and Singapore in this category, says thereport.

Besides, neighbouring countries Pakistan and China arealso placed at a better position than India on the parameterat 51 and 58 position respectively.

[caption id=“attachment_86274” align=“alignleft” width=“380”]  The findings are part of WEF’s Global Competitiveness report 2014-15, where India has been ranked among a total 144 countries across the globe.[/caption]

More from Finance

Asian markets, Wall Street hold gains after Fed signals easing extraordinary support measures for economy SuperMoney indeed: Mumbai-based startup raises a million USD from Unitus Ventures

The findings are part of WEF’s Global Competitivenessreport 2014-15, where India has been ranked among a total 144countries across the globe.

The performance review was based on 12 pillars includingdevelopment of the financial markets. A value of 1 forregulation of exchanges implies ’not at all effective’ while 7represents ’extremely effective’. Meanwhile, the country has also slipped to the 39th placefrom 18th rank in terms of easiness for companies to raisemoney by issuing shares on the stock market, the report said.

Hong Kong SAR followed by Taiwan, China and South Africawere found to be countries where raising money through equity markets was the easiest.Meanwhile, India has shown improvement with regard tostrength of investor protection.

The country has been ranked at 34th place along withPakistan, Montenegro and Chile, among others, in the report.

WEF’s last year report had ranked India at 41st positionwith regard to ‘strength in investor protection’.

A host of positive developments on domestic as well asglobal front has helped the Indian capital markets go onwinning spree in the recent times.According to a report by Bank of America Merrill Lynch,the Indian benchmark Sensex is the best performing index amongmajor global markets so far in 2014 and is expected to doubleover the next four years.

Continuing their record setting spree, both thebenchmark indices, Sensex and Nifty surged to their historicintra-day peaks of 27,225.85 and Nifty 8,141.90 last week onaggressive buying as a result of strong foreign capitalinflows on the back of robust economic growth.

PTI