'Make stock markets accessible to foreigners'

Ahmedabad, Dec 2: To drive full benefits of the globalisation, the trading in Indian stock markets should be made fully accessible to the foreigners and the Union government should abolish the tax on profits earned by them on buying and/or selling of Indian shares, Munich Stock Exchange (MSE) president Dr Uto Baader said today.

Dr Baader, who was in city to inaugurate the trading terminal centre of Parsoli Corporation Limited (PCL), reasoned that the taxing should be abolished at the earliest by the Indian government as the practice prevails in this country only. While in all other countries of the world, the foreigners need to pay taxes on profit-earned in their own country.

The opening of free trading in Indian stock markets will bring large number of investors from all over the world to India, he pointed out.

''India is ripe for the free and open stock market trading to fully benefit from the globalisation of its economy,Ò' he said while talking to reporters.

He said few years ago there was no existence of Indian companies in German stock market, but now there are so many Indian companies listed on German, European and American stock markets.

He opined that to further draw the benefits of globalisation of the Indian economy, the Rupee should be made fully convertible by the Indian government.

On the strengths of Indian economy, Dr Baader said the country has great potential to emerge as one of the greatest winners of the globalisation.

He strongly criticised the American and European governments for adopting double standards in adopting globalisation of economy either by partially opening their own markets or protecting them from the developing countries.

The developed nations should cut down their subsidies to local products, particularly farming sector, to give balanced level playing field to the producers of developing nations. For example, Indian rice should be allowed to enter and sold freely in European and American markets by the developed countries,'' he said, adding, ''it should be a two-way process and globalisation in true sense.'' Time has come to break the geographical, economical and social barriers for mutual benefits, Dr Baader added.

UNI