Markets

Transaction costs must go down: NSE chief

Our Bureau Chennai | Updated on November 05, 2019

Finance Minister Nirmala Sitharaman and Vikram Limaye, MD and CEO of NSE interact during closing ceremony of Silver Jubilee celebration of NSE.   -  The Hindu

Vikram Limaye, MD & CEO of the National Stock Exchange, on Tuesday made a strong pitch to the Centre and SEBI to bring down securities transaction and compliance costs to increase equity penetration in the country.

The number of direct and indirect investors in the equity markets is less than 5 per cent of the population, whereas comparable numbers for emerging markets are in the range of 12-15 per cent. For developed markets, the numbers are as high as 35-40 per cent. This despite the strong growth in the asset management industry over the last 3-5 years, Limaye said at a function to mark 25 years of the exchange, which was attended by Finance Minister Nirmala Sitharaman and SEBI chief Ajay Tyagi..

“I would like to mention a few areas where concerted action from the government, regulators, MIIs and market participants could help us achieve broader market access for investors and issuers,” he said while highlighting the need for simplifying the KYC process and a comprehensive review of institutional participation in equities, equity derivatives and corporate bond markets.

He also wished Jan dhan Yojana-like scheme to open demat accounts using just a bank account and Aadhar. ETF segment needs to be further developed to provide simple and cheaper options for investors, he added.

Published on November 05, 2019

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