SEBI Official Sees Indian Equity Market Valuations as Attractive

India and Russia Strengthen Financial Ties Through Capital Markets Cooperation

Key Developments:

• India's capital markets have become more accessible and efficient, with technological innovation and streamlined processes reducing the cost of market participation and broadening access.
• SEBI, the Securities and Exchange Board of India, is working to make India's capital markets more attractive to foreign investors, including proposals to cut FPI registration timelines and expand digital onboarding tools.

Russian Interest in Indian Markets

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• The number of Russian-linked FPIs has climbed significantly over the past two years, reflecting increased interest in Indian markets as an alternative destination amid geopolitical headwinds and sanctions affecting Western capital flows.
• Alfa Capital Management, First Asset Management, Igor Noskov, and Vsevolod Rozanov are among the Russian entities registered as FPIs with SEBI, alongside Sberbank, the first Russian bank to obtain an FPI licence in India in late 2023.

Currency and Settlement Challenges

• Sergey Glazyev, Economic Advisor to the President of Russia, emphasized the need to address currency conversion hurdles and enhance participation in each other's financial markets.
• RBI representatives noted frameworks already in place to allow the Indian rupee to be used for trade flows, helping reduce foreign exchange risks for participants and creating a foundation for broader financial cooperation.

Collaborative Efforts

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• SEBI is engaging with the RBI, Russian banks, and other industry representatives to create avenues for seamless cross-border investment.
• Kamlesh Chandra Varshney, whole-time member of SEBI, stressed that stronger engagement is not only about investment figures but also about building confidence and facilitating long-term cooperation in capital markets.
• Varshney highlighted the collaborative efforts between India and Russia, citing the potential for Russia's subsidiaries in India to raise capital, leverage India's technological capabilities, and employ the country's skilled labor force.