Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Demystify stock market operations: Chidambaram
BackBack

Demystify stock market operations: Chidambaram

FM says the stock exchanges should keep the products simple which can be easily understood by small investors

Finance minister P. Chidambaram (left) strikes a gong during the launch of MCX-SX in Mumbai. Photo: PTI (PTI)Premium
Finance minister P. Chidambaram (left) strikes a gong during the launch of MCX-SX in Mumbai. Photo: PTI
(PTI)

Mumbai: Expressing concerns over malpractices in equity trading, finance minister P. Chidambaram on Saturday said there is a need to demystify the functioning of stock market and deal with insider trading issues to inject confidence in retail investors.

“It is important that we have to demystify the operations of the stock market. We have to make sure that there are no malpractices like insider trading. Only then the retail investors will come to stock market in very large number," he said.

Chidambaram was speaking after inaugurating the new stock exchange MCX-SX, which will begin trading on Monday.

As a word of caution to the two major bourses—NSE and BSE—and the new one MCX-SX, Chidambaram said they should endeavour to keep the products simple which could be easily understood by small investors.

“If you want retail investors in India to participate in the stock market, especially in the equity market, you have to keep the product simple and inject confidence in the investor that the integrity of stock trading in preserved," he said. Admitting that there are malpractices in the Indian stock market as there are elsewhere in the world, the minister regretted that “we discover a few of them and punish virtually none".

He further said that regulators should be one step ahead of “innovation" by manipulators.

“In fact the crisis 2008 can be attributed to the fact that the innovators remained one step ahead of the regulators. And in the US they say that regulators were sleeping on their job. I would therefore urge that regulators always remain one step ahead of the innovators," Chidambaram said.

India has the largest number of listed companies in the world, he said, adding that stock markets would become more competitive with the entry of MCX-SX.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Feb 2013, 11:03 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App