National Stock Exchange Chief Executive Ashish Chauhan on Monday urged the regulators to standardise the process of counting derivatives volume and ease intrusive FPI rules.
“We get impressed by the notional-to-premium ratios… We think we are the largest market in derivatives. We are by far not. The US, on premium terms, in stock options alone, does around 5 times more than India. Tesla alone sometimes does more than the entire India. We are going only for those random statistics and making policies on the basis of those,” Chauhan said at the CII Financing Summit.
FPI regulations, he said, have become very tough over the last several years and the amount of information sought is very intrusive. Many FPIs do not want to actually give that information, so they are staying away.
Chauhan said the AI-led growth in the US has already been challenged by China’s cheaper open-source models. The earlier belief that AI would capture 90% of productivity gains has dropped to under 7%. “That opens 93% of the market for India’s IT and service sectors to provide solutions.”
