Home / Business / Stock exchanges try to assuage concerns after MSCI warning – informationspot

Stock exchanges try to assuage concerns after MSCI warning – informationspot

Click Here

Domestic stock exchanges on Wednesday tried to assuage concerns over the fallout of the move to snap with their foreign counterparts. “This is to reassure all stakeholders that the Indian exchanges will work with them to facilitate an orderly transition that is not disruptive to the and stakeholders. This engagement with various stakeholders will continue in the coming weeks to address any concerns,” said the exchanges in a joint statement. On February 9, the National Stock Exchange, BSE and Metropolitan Stock Exchange announced termination of data-feed and licensing agreements with overseas bourses to put an end to offshore trading of domestic securities and indices. The move was slammed by global index provider and also the Futures Industry Association (FIA), a trade association of exchanges, terming it “disruptive” and “anti-competitive”. MSCI, whose indices are widely tracked by global exchange-traded funds (ETFs) with cumulative assets that run into trillions of dollars, had urged exchanges and market regulator Securities and Exchange Board of India (Sebi) to reconsider the move. It even warned of cutting India’s weight in its indices. “It is a clearly negative development for the accessibility of the Indian equity market for international institutional investor… and could result in an unprecedented disruption of trading in financial products in around the world,” said last week. FIA in a statement had said the move would “disrupt trading on numerous exchanges around the world and alarm international investors.” The latest statement by Indian exchanges is aimed at assuaging some of the concerns raised by the market players over accessibility to domestic securities. “Indian exchanges will continue to work with the regulators to further enhance the attractiveness and competitiveness of the Indian for accessing and trading India related products.

There have been some announcements in this regard in the recent past in the Union Budget and by Sebi,” the release said.

Click Here
Source link

About sammy

Check Also

TI Cycles bets on market shift, moves from commuter cycles to recreational – informationspot

TI Cycles, the bicycle manufacturing and marketing arm of the Murugappa Group, is shifting …

Leave a Reply

Your email address will not be published. Required fields are marked *