All Entries in the "India" Category
MCX-SX Should Be Allowed to Offer Competition in The Exchange Space
The Bombay High Court has set aside the Sebi order denying MCX-SX permission to conduct any business of a stock exchange other than trade in currency derivatives and directed Sebi to consider MCXSX’s application afresh. This is a welcome development and Sebi should now move expeditiously to let the new exchange start operations in all [...]
India Commodity Transaction Tax, a Welcome Proposal to Raise Revenue
Close on the heels of a sharp hike in customs duty on import of gold and silver comes the report that the Government is considering re-imposition of commodity transaction tax (CTT) on derivative trades that take place in the futures exchanges. Clearly, New Delhi is keenly looking to raise more and more revenue from sources [...]
SEBI Says it Found Abnormal Currency Trades on One Bourse
Market regulator Sebi has said it had found some “abnormal concentrations of some trading members” at a certain exchange operating in currency segment and the issue was taken up with the relevant bourse. While Sebi has not named the exchange, media reports have said that one particular trading member once accounted for about 80 per [...]
RBI Allows Foreign Individuals to Directly Invest in Equities
The Reserve Bank on January 13 allowed foreign individual investors, pension funds and trusts as QFIs to directly invest in equities of up to five per cent of paid up capital of the listed company. On January 1, the government had announced that soon Qualified Foreign Investors (QFIs) will be allowed to directly invest in [...]
Curb Rise in Proprietary Trading and Derivatives: Reserve Bank Of India
The rising share of derivatives and higher proportion of proprietary trading need to be monitored, the Reserve Bank of India (RBI) said on Thursday. In its fourth Financial Stability Report, the central bank underlined structural changes that the equity market has undergone in terms of the extreme contrast of the volume activity in the cash [...]
India Algorithm Trading a Non-Starter as Bourses Fight
The broking community is unable to use algorithmic trading to take advantage of price differences between the two national exchanges—the 136-year-old Bombay Stock Exchange (BSE) and its younger rival, the National Stock Exchange (NSE)—as the latter does not seem to be keen on allowing multi-exchange algorithms, brokers allege. While a section of the market blames [...]
India’s Equity Market Microstructure Evolution
India’s equity market microstructure has undergone a significant transformation over the past few years. The key drivers of this change have largely been regulatory as Direct Market Access (DMA) and Smart Order Routing (SOR) have been permitted by the Security and Exchange Board of India (SEBI). Technology has also been a factor as both the [...]
Trade Tech India 2011 Highlights
The third annual Trade Tech India was held in Mumbai this past week. The 2 day conference offered a unique and excellent opportunity to discuss and meet with India’s electronic trading industry. The conference began with the keynote address from J.N. Gupta the Executive Director of the Securities Exchange Board of India (SEBI). He talked [...]
Unauthenticated News Circulated by SEBI Registered Market Intermediaries
It has been observed by SEBI that unauthenticated news related to various scrips are circulated in blogs/chat forums/e-mail etc. by employees of Broking Houses/Other Intermediaries without adequate caution as mandated in the Code of Conduct for Stock Brokers and respective Regulations of various intermediaries registered with SEBI. Further, in various instances, it has been observed [...]
Indian Exchanges Allowed Trading on Global Exchanges
After prolonged demands from Indian exchanges the Securities and Exchange Board of India has now allowed them to provide trading in derivatives contracts on 24 global exchanges including that of US, Europe and Asia global indices. “It has been decided to permit stock exchanges to introduce derivatives contracts (future and options) on foreign stock indices [...]
