Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
SEBI chairman Ajay Tyagi has proposed to the stock exchanges to gradually move towards real-time settlement of trades in the share market. Speaking at a FICCI conference, Tyagi said he would like the exchanges to start with a trial or a pilot project for the same. He also proposed demat of G-Secs (Government Securities) to encourage retail participation in them.
“Exchanges, through the use of blockchain, should try real-time settlement in the stock market more seriously. They should go for it at least on a pilot or trial basis,” Tyagi said. He said the market has come a long way from the 45-day settlement of trades.
Currently, the settlement of trades in is done on a T+2 basis — that is, today plus two days, by when stock transactions should be settled with payment and delivery obligations.
Real-time would mean settlement the same day or even during trading hours. However, the specifics of how the system would work is still unknown. According to brokers, the T+2 settlement system encourages intra-day trading but real-time settlement would most likely mean immediate payment of cash and delivery of shares.
During the lockdown period since March as the stock market witnessed a sharp decline, retail participants, sensing an opportunity, have pumped in more funds than normal into the market. Tyagi noted that in June alone the number of new demat accounts opened jumped to around 10 lakh; it was around five lakh monthly during the pre-Covid period.
“Such huge retail participation is not a cause of concern but small investors, mainly those who are coming into the market for the first time, should start with investments into G-Secs and in a more gradual manner as it involves less risk. Demat of G-Secs would be a good step. Government will take a call on it. Corporates should be more upfront in sharing information since retail investors are showing faith in the market,” he said.
On the issue of overseas listing of Indian companies, Tyagi said there were income tax and FEMA (Foreign Exchange Management Act ) rules that need to be streamlined for this proposal. SEBI has already allowed Indian companies to list in other countries.
Among other things, Tyagi stressed on the need for more active players in the secondary bond market. On allowing stock brokers to work from home, Tyagi said, “So far during the lockdown period there has not been any big problem with regard to brokers working from home and no big defaults too.” He said SEBI would study this further.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
The country hasn’t had a quiet moment since the military seized power on February 1
The Tatmadaw sees itself as an embodiment of the nationalist soul of Myanmar. But their brand of nationalism ...
While Supreme Court has cleared the way for women seeking longer tenures and senior roles in the Indian Army, ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor