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Thursday, December 05, 2019

Blockchain can transform trading, says SEBI chief

He also said that exchanges should not use their oligopolistic position to charge exorbitant and unreasonable fees from investors.

By: ENS Economic Bureau | Mumbai | Updated: November 6, 2019 5:11:14 am
Technology has made possible algo trading, T+2 days settlements and holding securities in electronic format among many other things.

Sebi chief Ajay Tyagi on Tuesday urged stock exchanges to follow governance norms better than what they preach to listed companies. He also said that exchanges should not use their oligopolistic position to charge exorbitant and unreasonable fees from investors.

The capital markets regulator chief was addressing an event commemorating the silver jubilee of the National Stock Exchange (NSE), which has become a market leader since its inception and controls two-thirds of volumes by disrupting the 144-year-old BSE back with its electronic screen-based trading terminals in 1994.

Technology has made possible algo trading, T+2 days settlements and holding securities in electronic format among many other things. And in future too, technology can continue to transform capital markets. The Sebi chief said that the blockchain technology had the potential to transform the trading, clearing & settlement process. He said: “The fund management industry, which has already taken the initial step with robo advisory services, could look very different in future with adoption of Artificial Intelligence & Machine Learning.”

Alongside this, Tyagi also highlighted the role of exchanges in governance. “Exchanges need to follow governance norms much better than what they preach to listed companies. While exchanges are for-profit commercial entities, they should refrain from using their oligopolistic position by putting out exorbitant fee structures,” said Tyagi.

Meanwhile, Finance Minister Nirmala Sitharaman on Tuesday said the Centre and the RBI are working to resolve the issues being faced by realty sector. Admitting that realty sector has been left out of the booster measures announced earlier, she said the sector has a spillover effect on many sectors, especially the core sector. —FE WITH PTI

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