Kulshrestha calls for stable taxes and interest rates
The market regulator needs to come out with newer products from time to time cater to the risk appetite of investors in the capital market, said V.S. Sundaresan, Executive Director, Securities and Exchange Board of India (SEBI).
Sundaresan underlined the need to create an ecosystem with a robust enforcement system leveraged by technology.
He was speaking of new products to be launched at a virtual event, ‘Indian Capital Market @US5$ Trillion Mark – The Way Forward’ organized by The Associated Chambers of Commerce and Industry (ASSOCHAM) on 23 June 2021.
With the launch of the Gold Spot exchange, India has an opportunity to become a price setter, Sundaresan pointed out.
“With the launch of this Gold Spot Exchange, there will be an opportunity to offer both spot gold and the electronic gold receipts to be traded on the exchange as securities,” Sundaresan explained.
Other new products like the innovators growth platform (IGP) and the introduction of Options on commodities would help mitigate risk among a different class of investors. “Non-profit organizations would be able to raise capital for their ventures through the Social stock exchange which is yet another new product,” he said.
Speaking about the uniform security market code, Sundaresan stated that by removing the provisions which are not useful, it will really be helpful for the ease of doing business by stating all the required compliance in one code.
He also informed that the market regulator is also working on different kinds of concepts for the benefit of the capital market.
“Things like controlling shareholders with a different type of share voting pattern will help in raising money by selling stake but not losing control. The percentage needs to be significant even if not a majority to become a controlling stakeholder,” he said.
Neeraj Kulshrestha, Chief Regulatory Officer, BSE Ltd, called for further push to reforms for the development of the capital markets.
“There is a need to push for faster clearances. To set up a power unit, one needs to get almost 90 different kinds of clearances,” he said.
He also called for stabile taxes and interest rates.
Arun Raste, MD & CEO, NCDEX, observed that a comparison of the US economy and its capital market capital shows a difference of around 198% while that of India is just around 104%. “There is a huge potential which can be tapped,” he said.
According to Raste, the share of agriculture is growing in India’s GDP. “From a 16-17%, Agriculture’s share has grown to 20% with a 3.4% growth even during the pandemic. It was mostly the government spending in agriculture which was spearheading the growth,” he said.
Mitigating risk in the agriculture sector is much needed, added Raste. #economy #investment #trade #forex #technology /fiinews.com
