Friday, February 4 2005 17:03 Hrs (IST) - World Time -

London: Symbolising the growing commercial and economic links between Britain and India, Union Finance Minister P Chidambaram today (Feb 4, 2005) formally inaugurated the newly built London Stock Exchange (LSE).

"I believe the road to prosperity is through investment," said Chidambaram, who opened the Exchange by setting in motion 'The Source', LSE's dynamic sculpture positioned in the main atrium of its new building at Paternoster Square.

Chidambaram, who is in London to participate in the G-7 meeting of Finance Ministers said, "We are happy that 18 Indian companies are listed on this market and I believe more will join in the near future."

Referring to the close economic ties between the two countries, he said in the current fiscal year, there were as many as eight visits from the London Stock Exchange to India.

The Minister hoped that there would be greater two-way investment between India and Britain.

The 18 Indian companies listed on the markets have a total market capitalisation of $ 2.94 billion.

In addition there are nine Indian companies with Depository Receipts traded on the Exchange.

In 2004, two Indian companies - ACC Ltd and Amtek Motors - successfully raised funds in excess of $ 100 million when they issued Depository Receipts on the Exchange.

"There is a high level of international investor demand to share in the success of the Indian economy and London has been a conduit through which international capital has contributed to the growth of Indian companies and its wider economy," Director of Market Services of the Exchange, Martin Graham said.

"We are delighted that India is to make its debut at the G-7 today, becoming one of the few outside countries to attend one of its meetings.

It is a sign of your growing importance as a world economic power and of the relationship you have built with Britain and other G-7 nations," he said.

Graham said the Exchange has committed itself to India as one of its three key priority markets.

"We would like to work with you to promote investment in Indian companies and we would like to see more Indian companies list on our markets.

"Not only does a London listing provide Indian companies with access to one of the world's largest pools of investment funds and liquidity to grow and develop your businesses, we also offer unrivalled international visibility and access to European investors who are hungry for access to the high growth Indian market," Graham said.

He said, "we warmly welcome the increased British Government's focus on India and we hope to be able to play our full part in attracting more Indian companies to the United Kingdom in the coming years."

Graham has recently joined the Board of the Indo-British Partnership, a private sector organisation supported by the Britain's Trade and Investment Department.