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Delay in reforms will stifle growth -- Mehta
VK Chakravarti
Ahmedabad, December 9: The Securities and Exchange Board of India is set to introduce derivative trading by January-end or early February, along with rolling settlement in select scrips. According to Sebi chairman DR Mehta, the derivatives trading would begin with index future hedging of 90 days.He admitted that modernisation might have reduced the brokers' margin but has increased total volumes. "Any more delay in further reforms might stifle the growth," he said and added, "it's not a warning from a regulator but a matter of fact."Mehta cited the example of NSE, which within a few years overtook the 125-year-old BSE in volume of trade. He said the volume of daily trading in the domestic capital market has risen from a modest Rs 500 crore five years back to over Rs 11,000 crore ($ 2.5 billion) now, already taking over Asia's second biggest capital market of Hong Kong (US$ 800 million). Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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