Nothing to gain
Jignesh Shah: Feb 28 2013, 03:03 IST
or gains. Stock market players benefit from such offsets, as all their trades are regarded as hedging transactions, even though they are not. Moreover, unlike stock exchanges, institutional players, including banks, are not allowed to trade in commodity derivatives. Options and index trading are also not permitted on commodity exchanges. It requires no sixth sense to predict that broad-basing the transaction structure to include commodities and currencies will destroy commodity exchanges, without adding any coffers to the Central government. The fiscal deficit will only widen, with net loss in revenues, following falling incomes from the participants in the two markets.
The writer is founder and group chairman, Financial Technologies (India) Ltd
Previous Story Shift away from bank-dominated financial system: Economic Survey Next Story Over 12 lakh students to appear in CBSE class X exam, nearly 10 lakh for class XII
Reader's Comments| Post a Comment
Be the first to comment.