Bourses should reconcile regulatory, market interests: NITI Aayog
New Delhi, Aug 8 : Indian stock exchanges need to further reconcile their regulatory functions with market interests in order to protect and promote the interest of retail depositors, NITI Aayog Vice Chairman Rajiv Kumar said on Wednesday.
Speaking at the National Stock Exchange of India (NSE)'s silver jubilee celebrations here at which the NSE unveiled its new logo, Kumar also urged domestic capital markets to bring about better reconciliation between the Indian spot and derivative markets so as to win the confidence of small investors.
"Our exchanges perform regulatory functions and here they need to consider if there is a trade-off between that and profit maximisation," he said.
"This is required to protect the interests of retail depositors, so that the markets can go ahead with the work of inorganic growth."
The NITI Aayog Vice Chairman said that a reflection of the situation is seen in the fact that despite best efforts of the NSE, only two per cent of Indian households have come into the capital market.
"In the common Indian mind, the stock market is still a 'satta' (gambling) bazaar over which they have no control ... a place controlled only by the big players," Kumar said.
"The NSE should aim like it is in the US, for instance, where 40 per cent of the households are involved in the capital market."
Kumar noted in this regard that the size of derivatives trading in India is more than 40 times the "underlying equity trading" and called for better reconciliation between the two to boost retail investors' confidence in the stock markets.
"While the stock exchanges have done a great deal to bring the SME segment of the economy into the capital markets, the bourses need to do more to integrate more small and medium enterprises with the capital market," Kumar said.
Former Prime Minister Manmohan Singh, who was the Finance Minister when the NSE was established in 1994, was also present on the occasion, along with Union Transport Minister Nitin Gadkari and Delhi Lieutenant Governor Anil Baijal.
As per the World Federation of Exchanges, the NSE is 3rd largest exchange in the world in terms of volume of trades, while it is ranked No. 1 on index options contracts and No. 2 on currency derivatives contracts.
The NSE's new logo is a reworking of its earlier one with the addition of marigold, yellow, red and blue, symbolising integrity, excellence, trust and commitment.
"The multiple colours capture the multifaceted nature of the business, with red denoting NSE's strong foundation, yellow and orange being inspired by the marigold flower that signifies prosperity and auspicious ventures, and the blue triangle is a compass, always future-oriented and helping us find our true North," an exchange statement said.
"The new brand identity reflects NSE's multi-dimensional nature: multiple asset classes, multiple customer segments and its multiple roles including that of an exchange, regulator, educator and market developer," it added.
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Fadnavis rides motorcycle to Vidhan Bhavan, says PM Modi asked only for 'small sacrifices'
Mumbai (PTI): Maharashtra Chief Minister Devendra Fadnavis on Thursday rode a motorcycle to the Vidhan Bhavan here and later defended the Centre's austerity measures, saying Prime Minister Narendra Modi has only "asked people to make small sacrifices".
He also criticised the Opposition for creating "unnecessary controversy" over the matter, adding that questioning the PM's foreign visits - aimed at strategic alliances and economic benefits - was "sheer foolishness".
Fadnavis arrived at the Vidhan Bhavan in South Mumbai on a motorbike from his residence 'Varsha', with BJP leader and minister Ashish Shelar accompanying him, to attend the swearing-in of new members of the legislative council.
The move comes as part of the measures after PM Modi's appeal to conserve fuel and foreign exchange in view of the ongoing conflict in West Asia, which has disrupted global energy supplies. India relies heavily on West Asia for crude oil and gas imports.
On Wednesday, CM Fadnavis announced a series of austerity measures, including halving the number of vehicles in the convoys of his cabinet colleagues, and cancelling foreign tours of ministers and officials.
Addressing reporters here on Thursday, Fadnavis said the state government had curtailed convoys, cancelled avoidable foreign tours and decided against holding large government events for the next six months.
Targeting the Opposition, the CM said similar austerity measures had been adopted by previous governments, including during the tenures of former prime ministers Indira Gandhi and P V Narasimha Rao, as well as by former finance minister P Chidambaram in 2012.
"The Opposition needs to show some maturity. Countries across the world have taken even tougher decisions. The prime minister has only asked people to make small sacrifices while himself taking very tough decisions. Creating unnecessary controversy over this is not appropriate," he said.
Fadnavis said he travelled by motorcycle to send a message on fuel conservation, adding that symbolic actions by political leaders help spread awareness among people.
"When leaders act symbolically in this manner, the message reaches the people. That is why I came here on a motorcycle," he stressed.
The chief minister said all unnecessary foreign visits by officials and ministers had been stopped, and efforts were underway to reduce fuel consumption and save foreign exchange.
"We have reduced our convoys. Wherever petrol and diesel can be saved, wherever foreign exchange can be conserved, we are making every possible effort," he said.
Fadnavis said a major government event scheduled in Satara on Friday would, however, go ahead as it was planned in advance and expenditure had already been incurred.
He said around 25 lakh families would receive benefits valued at Rs 10,000 crore under the Centre's Pradhan Mantri Awas Yojana during the programme.
"After this event, however, no large government programmes will be organised over the next six months," he added.
The CM also dismissed criticism on social media over PM Modi's foreign visits, saying overseas trips aimed at strategic alliances and economic gains for the country should not be equated with avoidable travel.
"The appeal is only against unnecessary foreign travel. It does not mean businessmen should cancel important overseas deals. Criticising the prime minister's foreign visits is sheer foolishness," he said.
