{"id":31370,"date":"2018-10-27T13:19:39","date_gmt":"2018-10-27T07:49:39","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31370"},"modified":"2018-10-27T13:19:39","modified_gmt":"2018-10-27T07:49:39","slug":"turf-war","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/turf-war\/","title":{"rendered":"Turf war"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-opinion\/turf-war\/article22725412.ece\"><b>Turf war<\/b><\/a><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The National Stock Exchange, the Bombay Stock Exchange and the Metropolitan Stock Exchange of India decides <\/span><b>to stop providing data feed and other support to overseas exchanges<\/b><span style=\"font-weight: 400;\"> that <\/span><b>list derivatives linked to Indian stocks and indices.<\/b><\/li>\n<li style=\"font-weight: 400;\"><b>Any existing agreement allowing data-sharing<\/b><span style=\"font-weight: 400;\"> with foreign bourses, except that which is related to exchange-traded funds, will <\/span><b>expire in six months.<\/b><\/li>\n<\/ul>\n<p><b>Reasons for the present move:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Offshore derivatives could be <\/span><b>causing migration of liquidity from India,<\/b><span style=\"font-weight: 400;\"> which is not in the best interest of Indian markets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Given that the volume of derivatives linked to Indian stocks trading in the offshore market is <\/span><b>higher than volumes in the domestic bourses.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ambitious endeavors may also benefit from the <\/span><b>crackdown on offshore derivative markets.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In India, the <\/span><b>securities transaction tax and the capital gains tax<\/b><span style=\"font-weight: 400;\"> discourage foreign investment in financial assets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The proposal to <\/span><b>extend trading hours in order to attract investors<\/b><span style=\"font-weight: 400;\"> too has failed to take off.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The present move, thus, is unlikely to <\/span><b>rein in the vast offshore market for Indian derivatives.<\/b><\/li>\n<\/ul>\n<p><b>Way forward:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s policymakers should <\/span><b>address the structural problems<\/b><span style=\"font-weight: 400;\"> that have caused trading in Indian derivatives to move offshore.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Turf war Context: The National Stock Exchange, the Bombay Stock Exchange and the Metropolitan Stock Exchange of India decides to stop providing data feed and other support to overseas exchanges that list derivatives linked to Indian stocks and indices. Any existing agreement allowing data-sharing with foreign bourses, except that which is related to exchange-traded funds,&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/turf-war\/\">Continue reading <span class=\"screen-reader-text\">Turf war<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-31370","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=31370"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31370\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}