Once the Goods and Service Tax (GST) is implemented, the number of companies listed on the Bombay Stock Exchange is likely to increase upto 10,000 over the course of next 10 years. At present about 5,500 companies are listed on the stock exchange.
"GST is an important framework. Today, there are 5,500 companies listed on the BSE. I would not be surprised in the next ten years, if more than 10,000 companies are listed on the BSE," Ashish Kumar Chauhan, Managing Director and Chief Executive of the stock exchange was quoted as saying by the IANS.
According to Chauhan, the GST tax regime will be beneficial to the smaller firms, which operate across multiple states. This will allow the firms to grow faster and bring in transparency in the system.
"Many companies at present have to fulfil regulations which are local. Under GST, their costs are expected to reduce and their profitability might go up. They will find it easy to operate across India," Chauhan said at an event organised by MCC Chamber of Commerce and Industry.
Funds raised via corporate bonds by private sector players have suddenly increased as banks are increasingly becoming more cautious against the backdrop of rising bad loans in the banking sector, the Financial Express.
"We had been talking about corporate bond market not doing well in our country. Suddenly, we see that corporate bonds are doing well in the capital market. We have recently launched BSE-BOND platform. Over Rs. 40,000 crore has been raised through corporate bonds in the last 45 days," Chauhan told the publication.
In July, the two stock exchanges of the country —the BSE and NSE (National Stock Exchange) —launched electronic book mechanism platform for issuing debt securities on private placement basis.
