Mr Sutch said all the companies have given him a verbal commitment and are considering the possibility of listing on the Nasdaq (National Association of Securities Dealers Automated Quotes). According to Mr Sutch, the main aim to set up the office is to offer after- sales service to the listed companies and also to attract more large companies. The various companies with which the Nasdaq has initiated talks for listing are from sectors like media and entertainment, technology, bio-technology, pharma, financial and fast moving consumer goods.

It has been one of greatest years for Nasdaq with 530 new listings, of which 117 are non-US companies and only one company from Asia (registered in India). This fact raises the credibility of opening a Nasdaq office in Bangalore. Since the rupee is yet to be made fully convertible and the issue have been hanging fire for some time now, the exchange is unable to open its trading operations here, he added. He said India has huge growth potential and Nasdaq needs people to research fulltime for the gems. The qualities they are looking forward in Indian companies wishing to get a Nasdaq listing are growth, innovation and technology.

Mr Sutch pointed out that one of the main reasons for Nasdaq's growth is heavy trading of shares, unlike the Bombay Stock Exchange. Nasdaq puts emphasis on liquidity of shares.

He sought to demolish negative ideas about Nasdaq shares being volatile. Citing statistics, he said volatility is company-specific. Nasdaq is less volatile than other stock markets.

Nasdaq is now home to 60 per cent of US companies. With a trading volume of $17 trillion, it is the biggest and the first electronic-based stock market in the world. It is planning to double its trading capacity from the present level of two billion daily. However, its system has the capacity to increase it to eight billion trades per day. It is also planning to introduce 24-hour trading.

He felt that the large disposable income of the non-resident Indians in the US and elsewhere could find Indian stocks attractive once they are listed on exchanges like the Nasdaq. He said the "GDR fiasco damaged India Inc" and had been a step backwards. He cited the bombing of BPL Communications' GDR.