Leading bourse BSE Ltd today said it wants to be an 'investment exchange' of the country and not a 'speculative exchange' and asserted that the government should correct the policy framework to promote investment capital.
"We want to be an investment exchange of the country and not speculative exchange of the country," BSE MD and CEO Ashish Kumar Chauhan said here today while addressing the members of MCC Chamber of Commerce & Industry.
He noted that the government needs to revert this incentive framework to curb speculation and capital formation through exchange route for the industry.
Chauhan said that India has already taken second position in speculation after South Korea, where derivatives (non- delivery exchange products) trading was 15 times the delivery volumes and if the current framework of incentivising speculation continued, the country might surpass South Korea.
In South Korea, non-delivery or derivatives trading size is 30 times bigger than the cash segment.
Chauhan said that in the US, derivates are about three times of delivery segment.
Explaining why speculative transactions is getting concentrated towards derivatives, he said it's meager Securities Transaction Tax (STT) compared to the cash segment.
He took pride for some Rs 45000 crore raised in just 45 days through its newly created BSE bond platform by corporates and said tightening of bank credit had fuelled corporates to look at bond market more aggressively.
Chauhan expects that GST will have a positive impact on the growth of corporates and in turn, 10,000 companies will be listed on its exchange from 5,500 firms now.
Meanwhile, BSE has started its roadshow from Kolkata and expected the operations would begin soon in the finance SEZ.
"We have started our roadshow from Kolkata and we will cover major cities of the country," Chauhan said.
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