· The new government at the Centre has catalyzed increased volume of trading in the stock market. The number of clients, who traded on the exchanges between January and April this year, has almost doubled between 16 May and 15 June, Dr V R Narasimhan, Chief, Regulations, National Stock Exchange of India Limited, disclosed during the Inaugural Session of the Financial Market Conclave organized by CII Eastern Region in Kolkata today.
· “This reflects the revival of investors’ interest in the market and economy. Average daily turnover has moved up from about Rs 12,000 cr to Rs 24,000 cr in the cash market and from Rs 147,000 cr to Rs 224,00 cr in the F&O market between the periods. The daily average number of trades in the cash market has grown from 59.34 lakhs to 98.94 lakhs trades between the periods,” Dr Narasimhan said, adding that the Narendra Modi government has the vision of a buoyant economy.
· According to him, development of capital market and infrastructure is required and so bright policies and termly available financial reports are needed to support them.
· “There is a perception that government or governance post May 16 (the day the results of the Lok Sabha polls were made known) is qualitatively different from the government or governance before that date. Whether this general perception is in fact backed by any conviction reflected in the form of investments and commitments. The answer appears to be a positive one,” Dr Narasimhan said.
· “Indian secondary markets are significantly globalised, and movements in the secondary market reflect global responses to Indian policymaking. Indian secondary market reflect global responses to Indian policy making,” Dr Narasimhan said.
· SEBI Executive Director, Mr Muralidhar Rao, SEBI has focused on Retail and Capital investment and SEBI has prepared guidelines on risk management system. “What is also required is the reduction in the cost of transactions and rationalization of frameworks,” said Mr Rao.
On the growth of SMEs, Mr Rao said capital should be raised to fund ventures. “SEBI has permitted the stock exchanges to give a platform to SMEs to have top exchange. Liquidity in the market is a must,” he said.
· Mr Viresh Oberoi, Chairman, CII Eastern Region, with the change of guard at the Centre, the country is eagerly looking some major policy interventions soon.
“We look forward to an environment that encourages infrastructure investments and other private sector investments, particularly in the manufacturing sector. We GST implemented soon and measures to bring down the fiscal deficit, current account deficit and inflation. The country needs to turn its focus on agricultural reforms, both on the supply side and land reforms to increase productivity and yield. There is also a need for rationalization of taxes and investment policies to attract the right international capital, cooperation and coordination with the state governments for expediting stalled projects,” Mr Oberoi said.
“With a decisive mandate, the new Government at the Centre has started taking some policy decisions that are urgently needed to revive economic growth. There is further scope for development of Indian financial market. Better products and services to provide higher returns at lower risks need to be devised, to attract a higher proportion of the huge household savings of the nation,” Mr Oberoi said.
The recent Companies Act, he said has brought many changes in the Corporate Governance regime. “CII is happy that the blanket restriction on step-down subsidiaries has been removed,” he said.
· With the world investment lens back on India and a definite policy direction coming from the new Government at the Centre, a lot more activity is in store for a possible turnaround in Financial Markets and BFSI.
· The other experts who spoke at the inaugural session were Mr Jyoti Prakash Gadia, MD, Resurgent India; Mr Bijay Murmuria, Chairman, Financial Markets Core Group, CII Eastern Region and Mr Bikramjit Ghosh, Co-Chairman, Economic Affairs Subcommittee, CII Eastern Region.
With a decisive mandate, the new Government at the Centre has started taking some policy decisions that are urgently needed to revive economic growth. There is further scope for development of Indian financial market. Better products and services to provide higher returns at lower risks needs to be devised, to attract a higher proportion of the huge household savings of the nation. In times of high cost of financing from banks, the sector can play a stellar role to drive the economy by drawing the much needed funds for capital formulation and infrastructure creation from household savings. The recent Companies Act has brought many changes in the Corporate Governance regime. With the world investment lens back on India and a definite policy direction coming from the new Government at the Centre, a lot more activity is in store for a possible turnaround in Financial Markets and BFSI.
Against this backdrop, CII Eastern Region organised Financial Market Conclave on 28 June 2014 at Kolkata. The conference deliberated on the macroeconomic scenario and recent policy changes and how they can impact the financial sector – something all corporate leaders and retail investors closely follow.
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