Piyush Goyal calls for transparency, integrity in stock markets
Stock Exchanges play a pivotal role in providing capital both to industry and service sector, said Piyush Goyal
Union Minister for Commerce and Industry Piyush Goyal has called for transparency and the highest level of integrity in the stock markets.
Addressing the National Stock Exchange (NSE) function to mark the Silver Jubilee Celebration of 25 Years of Nifty Index and 20 Years of Launching of Derivatives Markets in India, on Wednesday, he said perception matters in the financial world.
“I think perception matters in the financial world, and therefore it is imperative we must put in place a strong system to maintain the highest level of integrity and transparency, which will encourage every Indian to invest in the stock market & empower households to look at greater incomes through investment besides encouraging foreign investors,” he said.
The Union Minister said the NSE has been able to eliminate a lot of bad practices and bring in more transparency in the working of the exchange.
“On a lighter note, many people are missing the charm and the excitement of trading in the ring as it used to happen earlier, but I think given the current market dynamics and the size of the markets, I’m sure the ring could not handle this level of trade volumes” he said.
Goyal said India has earned respect globally, with its robust technical solutions for handling large trade volumes.
“It is equally pertinent that all financial products pass through the prism of ‘Trust, Transparency and Accountability’ so that they can turn into a rainbow of colors for the investors,” he said.
Goyal said Stock Exchanges play a pivotal role in providing capital both to industry and service sector and you channelize household savings and institutional flows for capital formation.
He added that the capital markets can become a source of finance for productive purposes like Infrastructure and Agriculture, which can benefit a very large majority of the country’s population.
“Also, commodity derivative markets can be used to eliminate risks of farmers,” he said.
The Union Minister said India is on the path of unprecedented economic growth. The rising economic indicators have showcased India and its true potential and capacity.
“We have had the highest ever exports in the history of India. During December 2021, goods exports stood at $37 billion, up by about 37% over last year. Exports have exceeded $30 billion for nine months in a row consecutively setting a record every month since April 2021,” he said,
Goyal called upon the NSE to create a single KYC system for all trading and financial transactions like the NSWS (National Single Window System)
“Recently we have launched the National Single Window System, one stop portal, which has been launched on a pilot basis which is a one-stop portal for approvals and clearances needed by businesses,” said Goyal.
Lauding NSE for being recognised as the largest derivatives exchange globally for 2019 and 2020, Goyal hoped it will contribute strongly to India’s growth story.