India to lead investment inflow in emerging Asian economies

India will be at forefront of strong investment flows into emerging Asian economies in next few years and more individual Indian investors will approach capital markets for financial advice, International Council of Securities Association chairman Ian C W Russell said on Wednesday.

Expressing the rationale for inflows ahead of the 28th AGM of International Council of Securities Association (ICSA) to be held here from April 15-17, Russell said: "Attractive private equity investments in the US have steadily been exhausted.

Borrowing costs are likely to rise in the near term in the US and bank regulations will restrict lending to leveraged businesses in the US."

He, however, cautioned India on the need to alleviate regulatory red tape to facilitate the expansion of offshore wealth management businesses into the Indian economy.

The objective of this year's conference is to convey a better understanding of the dynamic financial markets and their role in financing capital formation and economic growth in the country.

It will be attended by Rajeev Kumar Agarwal, whole-time member, Sebi and Tajinder Singh, deputy secretary general, International Organisation of Securities Commissions (IOSCO). Over 40 delegates from France, Canada, Mexico, Italy, Taiwan, Australia, Sweden, Hong Kong, Germany, Denmark, Korea, Hong Kong, Turkey, United Kingdom, Japan, United States will participate in the conference.

"The ICSA conference will be a catalyst for more cross border trade as conference participants pass along their understanding and knowledge of both the features and openness of the Indian economy, and business investment opportunities in the country.

A key take away for conference delegates will be the prospects for future growth of the Indian economy, and its interaction and contribution to the global economy," Russell, who is also the President and CEO of Investment Industry Association of Canada, said.

Drawing a parallel between Indian and Canadian capital markets, Russell said the regulatory framework in both countries is based on the common law tradition in terms of regulations, rules, governance and reliance on disclosure as the key mechanism for investor protection.