Asia's oldest stock exchange BSE is aiming for one thousand new listings over the next four to five years as a rollout of the Goods and Services Tax (GST) on July 1 encourages more Indian companies to list their shares, Managing Director and CEO Ashishkumar Chauhan told CNBC.
"BSE already has 5500 listings, and India has more than a million plus companies. So a thousand for us is not a big number," Chauhan told CNBC in an interview. "I would be disappointed if we don't do a thousand."
Chauhan's upbeat view rests not just on the impact of GST, which aims to replace a thicket of state-level taxes with a unified rate across a series of goods and services, but also on other measures that government has rolled out in recent months, including India's demonetization initiative and a push towards adoption of digital payments in Asia's third-largest economy.
But the GST will be a game changer, he said, although some pain in the transitional period of about three to six months could not be avoided.
According to Chauhan, the GST will transform a greater part of India's informal economy to a formal one, by connecting companies to a single tax framework.
That'll spur companies with good business models to grow at a faster pace, and tap the exchange to raise more funds for further expansion, creating a virtuous cycle.