international trade finance - equity markets 1-5

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Page 1: International Trade Finance - Equity Markets 1-5

Inte

rna

tio

na

l E

qu

ity

Ma

rke

t a

nd

Cro

ss L

isti

ng

of

Sh

are

s

Page 2: International Trade Finance - Equity Markets 1-5

Inte

rna

tio

na

l E

qu

ity

Ma

rke

t a

nd

Cro

ss

List

ing

of

Sh

are

s•

Inte

rna

tio

na

l fu

nd

ra

isin

g u

sed

to

be

th

e d

om

ain

of

mu

ltin

ati

on

al

com

pa

nie

s.

•M

NC

s n

ot

on

ly s

ou

rce

ra

w m

ate

ria

l a

cro

ss t

he

wo

rld

or

sell

p

rod

uct

s a

t m

an

y g

eo

gra

ph

ica

l re

gio

ns,

th

ey

als

o s

cou

tin

g f

or

cap

ita

l a

ll o

ve

r th

e w

orl

d a

nd

ra

ise

ca

pit

al

wh

ere

it

is c

he

ap

er.

•H

ow

eve

r w

ith

glo

ba

liza

tio

n a

nd

in

cre

ase

d c

ross

-bo

rde

r ca

pit

al

flo

ws,

sm

all

er

com

pa

nie

s a

re e

njo

yin

g t

he

be

ne

fits

of

rais

ing

ca

pit

al

in t

he

in

tern

ati

on

al

ma

rke

t.

•C

ross

lis

tin

g o

f sh

are

s th

rou

gh

iss

ua

nce

of

de

po

sito

ry r

ece

ipts

ha

ve

b

eco

me

a c

om

mo

n o

ccu

rre

nce

.

•In

ve

sto

rs’

ap

pe

tite

fo

r fo

reig

n c

om

pa

ny

sh

are

s h

ave

als

o in

cre

ase

d

ma

nif

old

an

d in

tern

ati

on

ali

zati

on

of

eq

uit

y m

ark

et

acr

oss

glo

be

is

ha

pp

en

ing

at

a f

ast

er

spe

ed

.

Page 3: International Trade Finance - Equity Markets 1-5

Co

ntd

.

•T

ho

ug

h i

nte

rna

tio

na

liza

tio

n o

f e

qu

ity

ma

rke

ts

ha

s a

bro

ad

er

con

no

tati

on

co

ve

rin

g e

nti

re

ga

mu

t o

f F

DI,

po

rtfo

lio

in

ve

stm

en

t b

y b

ig

tick

et

pla

ye

rs l

ike

pe

nsi

on

fu

nd

s, h

ed

ge

fu

nd

s

an

d p

riva

te e

qu

ity

fu

nd

s a

nd

th

eir

ilk

•T

his

mo

du

le f

ocu

ses

on

eq

uit

y c

ap

ita

l to

ha

ve

be

en

ra

ise

d b

y I

nd

ian

co

mp

an

ies

fro

m t

he

inte

rna

tio

na

l m

ark

et.

Page 4: International Trade Finance - Equity Markets 1-5

•E

ve

n r

ela

tive

ly s

ma

lle

r co

mp

an

ies

are

so

urc

ing

ca

pit

al fr

om

fo

reig

n c

ou

ntr

ies

an

d d

o n

ot

wa

nt

to

rem

ain

re

stri

cte

d t

o c

om

me

rcia

l b

an

ks

an

d o

the

r le

nd

ers

of

ho

me

co

un

trie

s a

s w

ell

as

do

no

t w

an

t to

de

pe

nd

on

th

e d

om

est

ic e

qu

ity

ma

rke

t.

•W

ith

th

e g

lob

ali

zati

on

of

tra

de

flo

ws,

li

be

rali

zati

on

of

rest

rict

ive

bu

sin

ess

po

lice

s, c

ross

b

ord

er

sou

rcin

g o

f ca

pit

al h

as

be

com

e h

all

ma

rk

of

the

da

y.

Page 5: International Trade Finance - Equity Markets 1-5

Inte

rna

tio

na

l F

un

d R

ais

ing

op

tio

ns