Foreign Investment is driving Asia’s most expensive stock market to all time highs. 50 new firms have applied for listing, a total worth of $6.3 Billion.
Although the Indian stock market is continuing its competitive nature, there are many governance issues that plague the system. Controlling shareholders are able to strike deals regardless of conflict of interest, whereas in Hong Kong and Singapore, independent investors are necessary for approval.
Other issues include family owned business buying stock at sub-market pricing as well as one sided shareholder meetings.
As with any new system in an emerging market the lack of transparency is always a problem, particularly real estate developers have been under scrutiny for its lack of common accounting principles.
Clean up the corruption issues in any emerging country and you find yourself with a blooming market.