Reforms, stability expected to usher growth: BSE chief

Mumbai: The Centre's regulatory reforms, as well as the strengthening of its public grievance redressal system, has imparted confidence to businesses and investors alike and this trend will usher in faster economic growth, BSE Chief Ashishkumar Chauhan has said.

In an interview to IANS, the BSE's Chief Executive and Managing Director said: "Government has undertaken various steps to implement regulatory reforms including the removal of controls, simplification of rules so that it becomes a facilitator instead of a regulator."

An ongoing economic slowdown on the back of rural distress, high GST tax rate and a subdued demand environment have plagued India's economy lately.

Nonetheless, the Centre in recent days has announced some structural reforms in banking, among other sectors, and these measures will lead to a reversal in the slowdown, he said.

"Initiatives such as simplification of registration procedures, cut in tariffs to liberalise trade, streamlining and rationalising the tax structure, permitting foreign investors and private players in almost all the sectors and strengthening of the public grievance redressal system has imparted confidence and stability to everyone in the business," he said.

On the question of the need to have stricter mechanisms to deal with massive stock volatility triggered by the spread of rumours on social media, Chauhan asserted: "BSE is actively taking measures to implement advanced surveillance measures, with an aim to providing investors with accurate information involving BSE and BSE listed companies."

"With such steps, we are ensuring that rumours on social media and alleged insider trading charges do not become a barrier for equity investment."

BSE has recently developed a 'real-time price movement' chart with correlation to market rumours.

In 2017-2018, the exchange introduced a data analytics-based solution that relies on artificial intelligence (AI) to track news related to listed companies on digital media.

Stock-specific volatility has lately eroded massive amounts of investors' wealth. This has led stock market observers to describe the trend as a growing impediment to investor participation.

Besides advance surveillance measures, Chauhan cited the recent steps like inter-operability amongst clearing corporation that will benefit the investor community.

"Going forward, my view is that more and more members of the investment community will start to insist on best price execution across exchanges and this, in turn, will have a positive impact on the liquidity and turnover across exchanges over the next few quarters," he said.

The inter-operability amongst clearing corporations went operational in the equity segment on July 15, 2019.

Regarding the company's subsidiary at GIFT City, Gandhinagar, called India INX, the BSE chief pointed out that trading turnover of various products on the exchange has witnessed a growth of 231 per cent to $2.08 billion for the first half of 2019-20 over the $630 million for the half-year ended September 30, 2018.A

The exchange's market share at Gift City for the half-year stood at 87 per cent.

"Driven by strong performance, ICICI Bank has recently joined India INX and India International Clearing Corporation, as a strategic investor," he said.

Besides, the BSE has been successful in growing its other businesses like StAR MF Platform, Insurance Broking -- BSE-Ebix Insurance Broking -- Power Exchange and Commodity Derivatives.

It currently facilitates trading in derivatives of gold, silver, Oman crude oil futures, copper, guar seed, guar gum, cotton futures, turmeric castor seed, chana and soybean.

Formerly known as the Bombay Stock Exchange, the BSE was established in 1875 and holds the distinction of being Asia's first stock exchange.

BY ROHIT VAID