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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
A market dominated by speculative activity is enriching sophisticated traders at the expense of retail investors, distorting exchanges and brokerages, and putting household savings at risk.
India is the world’s largest market for equity derivatives, measured by the number of contracts traded. Its cash market, where shares actually change hands, is a fraction of the size. A brief decline in unique retail derivatives traders this year offered some hope of a correction, but it did not last. The number fell 18% for a short period before activity picked up again. SEBI subsequently reversed its mandate on closing norms for derivatives, and reports suggest that trading volumes are set to rise once more.
The imbalance is striking. India’s equity market capitalization stood at $4.8 trillion in September …
The markets regulator has taken little by way of decisive action, with industry resistance and its own wait-and-watch approach getting in the way.
Frequent portfolio reshuffles and primary market allocations have driven returns. The question is whether this approach can hold up over the long term.
The NASDAQ-listed brokerage is joining a growing list of fintech firms setting up shop here. What could be in store?
