Indices' foreign trade stopped to curb Indian liquidity flight
10 Feb 2018 11:06 PM IST
New Delhi: The stock exchanges have decided in "their business interest" to stop trading of their indices abroad to check liquidity flight from India and this should not be seen as a "retrograde step", Sebi chief Ajay Tyagi said on Saturday. "They (the stock exchanges) have taken a commercial decision and I don't think this is a retrograde step as they are trying to ensure that liquidity in those indices stay in the country," Tyagi told reporters here after the market regulator's board meeting. Further, he said the exchanges want that liquidity from India should not be split or shifted abroad.
The comment came a day after the BSE, NSE and Metropolitan Stock Exchange of India (MSEI) decided to immediately stop the trading of indices of Indian securities on foreign bourses as part of a joint effort to stymie migration of liquidity to overseas markets. The move comes as Singapore Stock Exchange (SGX) has launched trading in single-stock futures in 50 of India's top firms that are part of the Nifty index.
Next Story
