Do equity markets really need longer trading hours?

Over the last one week, the recently launched Metropolitan Stock Exchange of India (MSEI) managed to create quite a flutter. Its decision to extend trading timings for equities till 5pm did manage to stir the market out of its slumber. Eventually, the NSE and the BSE refused to react and that meant that the MSEI was also forced to withdraw its announcement quietly. Of course, with zero volumes on most days, the MSEI has only symbolic value in the markets. But the bigger question is whether India really needs longer equity timings? Continue reading

Implications of GST for your investments

With the GST going live on the 01st of July, it is essential to understand the larger implications. You may wonder what could be the impact of an indirect tax on your investments, but you will be surprised to learn that there is a very strong correlation. The GST will impact the way you plan your finances, the way you transact your investments and the way you create your investment strategy. Here is how your investments will get impacted by the GST implementation. Continue reading

Operation NPAs

Will the most ambitious attempt be actually successful?

The RBI has embarked upon one of the most aggressive phases of NPA management. It has actually attacked the NPA problem simultaneously at two levels. Firstly, at the banking level, the Prompt Corrective Action (PCA) has been initiated against banks that have net NPAs beyond a certain threshold. The PCA will entail granular scrutiny of operations, restrictions on dividend payout, limits on recruitment and employee compensation, bar on branch expansion etc. Continue reading

GST Launch

Why the government must go ahead on schedule…

With the GST launch date of July 01st fast approaching, the jury is still out on whether Indian business is prepared for the launch. Frankly, there are no clear answers and one will know only once the entire GST is implemented. There are, in fact, 4 key reasons the GST Council must go ahead with a timely launch. Here is why… Continue reading

Commodity Options

The biggest challenge will be liquidity and asymmetry…

The SEBI took a major step this week by announcing the regulatory and operational framework for commodity options. The largest commodity bourse by volumes, MCX, has already indicated that it will be ready to launch commodity options in the next 3-4 months. Before we get into the challenges, here are some of the key features of commodity options… Continue reading

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