Strategic thinking in financial markets policy

Machinery of equity market can be used to obtain benefits for all other parts of financial trading

The Securities and Exchange Board of India (Sebi) has released a discussion paper on the working of the equity derivatives markets, which represents a collection of views of the critics. The equity market in its modern avatar came into place in 2000-01 and largely works well. The concerns that have been collected together in the discussion paper have been debated and turned down many times. Financial markets policy must aim to obtain high liquidity to foster capital raising, and to address India's declining market share in the global trading for Indian underlyings. The ideas of the discussion paper will harm