Ex-SEBI chief Damodaran slams idea of self-regulation by brokers
Former SEBI chairman M Damodaran on Saturday slammed the idea of broker associations promoting self-regulatory organisation (SRO). Addressing the annual conference of Association of National Exchange Members of India (ANMI) in Mumbai, he said he was not a supporter of SROs as such initiatives have not succeeded in the past.
“See the state of SROs formed by chartered accountants, medical council, bar council. It is miserable. It is necessary to first lay the building blocks before setting up an SRO. ,” Damodaran said.
Ashish Chauhan, MD, CEO, BSE raised the pitch for extending trading hours for bourses in the equity segment and Former SEBI chairman M Damodaran
questioned brokers for their inconsistent approach towards the same in commodity segment.
“Stock brokers do not want longer trading hours in the equity segment on the argument that their cost will go up, but they are fine if commodity markets trade for longer hours. Trading technology is available and investors in India deserve the best of technology and longer trading hours.” Chauhan also said that fundraising through the exchange platform was much less compared to trading volumes. “Policies should encourage fund-raising through exchange platforms,” said Chauhan.
Vikram Limaye, MD, CEO, NSE said “There is a belief that only speculators are dominating the market. For thriving primary markets, you require a robust secondary market and all kinds of participants. Speculation is not bad and an important aspect of price discovery. A liquid securities market is critical for well-functioning of primary markets. If we do not get our market development right in the next 3-4 years, long term would be a problem. Capital raising in India has been robust,” Limaye said.