Globalization of Trading Platforms - What it Means for India?

Abstract

With increasing importance being attached to stock market operations worldwide, the organisation of stock exchanges has come under the scanner again. Markets are striving towards achieving an almost dream like situation of global connection ensuring 24/7 liquidity. This paper elucidates various measures which have been adopted by stock exchanges and regulators to make most of a feasible financial synergy. A keen look at India is vital. An emerging economy and a growing market for securities, the stock exchanges have not performed as well as other South Asian financial spots. Country has adopted a conservative stand, though a 2006 regulations made some interesting changes in ownership structures of exchanges in India. The Bimal Jalan Committe Report has also made some significant suggestions for improving 'market infrastructure.' Any discussion of organisation of stock exchanges cannot be conducted in isolation of their regulatory roles - listing requirements, benchmarking corporate governance etc. This role can sometimes compromise their business interests.