After GDRs and ADRs, it could be the turn of SDRs (Singapore depository receipts).

Singapore is expected to emerge as a hot destination for prospective Indian equity issuers in the current year as the Singapore Exchange Securities Trading Ltd (SGX) is working overtime to draw clients from India.

Applitech Solution and at least four other technology companies have already drawn up plans to issue their shares on the Singapore exchange.

Indian issuers say listing on the Singapore exchange is far cheaper than on any of the US stock exchanges.

For instance, the cost of issuing on the SGX is 6 to 7 per cent lower than issuing ADRs and 4 to 5 per cent lower than issuing GDRs.

Conversion costs are also lower on the SGX. For instance, conversion from ADRs and GDRs to domestic equity shares is now around 4 cents per share.

It has been estimated that conversion from an SDR to a domestic share would cost only one Singapore cent per share.

Further, the Asian markets are perceived as far more efficient than their US counterparts.

According to Daiwa Securities SMBC, Singapore could outperform the other Asian markets on a relative basis "as there is a lesser concern about non-performing liabilities, low volatility and low valuations."

For Indians, the costs of travelling to make the requisite arrangements and negotiations will also be lesser, merchant banking circles said.

Foreign companies constitute almost 40 per cent of its total market capitalisation, making SGX one of the most internationalised exchanges in Asia.

The exchange's total turnover in 2002 was Singapore $1,12,708 million which translates into roughly Rs 3,04,311.6 crore (Rs 3,043.116 billion).

With 385 companies the SGX Mainboard's market cap in December was Singapore $ 2,88,228 million (Rs 7,72,815.6 crore or Rs 7,728.156 billion).

SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange.

The exchange was started on December 1,1999, following the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).

On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement.