Market regulator Sebi has banned any stock exchange run from abroad for issuing data from Indian Stock Market. Looking at the current market conditions of the experts, it is considered as a defensive step by SEBI. But with this move of SEBI, Centenary may now worsen the foreign investors' market. Due to this, the volume of the volume is afraid. At the same time, due to increased sales, the market will have a short-term loss. However, after a long-term perspective, the market will benefit from this step six months later.
Explain that the BSE, NSE and MSEI, all the three major exchanges, have been banned from trading in contracts and derivatives associated with the Indian Rudra Investment Stock Market Advisory with immediate effect on the foreign stock exchange. They believe that due to non-availability of data, Indian capital was going in foreign markets, thereby affecting the liquidity in the market. Liquidity will prevent India from going abroad from banning the data.
This effect will be on the market
-Pakistan Fiscal Director Jagdish Thakkar says that these decisions of SEBI will definitely lead to negative sentiment among foreign investors. He said that this decision has been taken at a time when 10% LTCG tax has been levied on the income from the share. At the same time, in India for derivatives, investors have to pay 30 percent capital gains tax, while there is no tax in Singapore. In such a situation, now foreign investors will have to pay more taxes on the trading, which is negative news for them.
Under the licensing agreement, it has been given a month's time, during this time the benefit of grandfathering will also be available. In such a case, during the notice period, sailings are expected to increase by foreign investors to avoid tax. It will affect its Indian market. Experts say that in the next few days, even though centimetres may look better in the markets across the world, the negative impact of this decision will be seen in the Indian market.
These fears will be made in foreign investors
Thakkar says that the SGX Nifty operating from Singapore is trading 24 hours a day. In this case, if there is something in the markets around the world, then investors get a chance to reduce or increase their positions on the Singapore-based exchange. While the Indian market stops at 3:30 PM. In such a scenario, the advantage that foreign investors received on Singapore or Dubai Stock Exchange will not be available on NSE or BSE. In such a scenario, investors can make the distance.
Sachin Sarvade, technical analyst, SMC Institutional Equities says that the restriction of trading of Indian stocks on the Foreign Stock Exchange is a better step in the long run. This will help in saving the liquidity of the Indian market. There may be some worries about the volume initially, but the market will get its advantage further. Foreign investors who wish to trade in the Indian market will have to trade in accordance with the existing rules here. Liquidity in the market will increase. At the same time, the government will also get tax. They say that if this step was not taken then there could be more damage to the domestic market.
Liquidity going abroad
The Indian Best Profitable Equity Tips index has been trading in Singapore for the past several years. According to a report by SEBI, in the case of turnover last year, the Nifty Future was trading at around Rs 51 lakh crore via the Singapore Exchange. In terms of market share, it is more than 46 percent. Experts say that there was a concern of SEBI for this matter too. Businesses were growing in Indian securities and derivatives in overseas markets. In terms of ratios, it was more than the domestic market. In this way, liquidity was going abroad from the domestic market.
The question arises on the image of the Indian market
According to Margaret Yang, Analyst of CMC Markets, shutting Offshore channels for the Oscars Market will not benefit the Indian market, but it will create a barrier to the international market's internationalization. With this, foreign investors can shift towards the second emerging market. He also said that in the coming days, this move in the Indian market could lead to ups and downs.
What to say is that of SEBI
According to SEBI Chairman Ajay Tyagi, due to non-data sharing of foreign exchange, the business will increase on the domestic exchanges and this decision is fully connected to the commercial interest. At the same time, according to NSE CEO and MD, Vikram Limaye, this decision will benefit the Indian stock market and Liquidity will not be able to go abroad.
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