SUCARAMAN RAMAMURTHY, CEO and managing director of BSE | Photo credit: KSL
The oldest exchange in the country, BSE, does not participate in any price or competition war, but strives for a leveling field and market deepening.
“We do not like price or competition wars,” said Lationaraman Ramamurthy, CEO and BSE managing director, in an interview with Business line. “Our idea is not a specific number of market share, but a level game field. Where market participants will decide what exchange they are giving them benefits and trade.”
“We face the winds against with a more leveling playing field between exchanges and we are working very hard in these areas. The first area is the best price execution. Although regulators have clearly directed the exchanges that there should be the best price execution, some of the runners still have software that does not provide a level game field. Business line.
“The second area is the issuance of a common contract note, which has somehow dragged the legs for a while. Happily, it should be at the end of April. These two beautiful and much more level of play,” he added.
Meanwhile, EEB focuses on building better internal efficiency and introducing alternative products to expand market amplitude. This approach, said Ramamurthy, would have volumes and profitability.
Global competition
Ramamurthy also said that in the interconnected financial world today, competition is not limited to local exchanges. “Our feeling is that competitions are not local, they are global,” he said. “There is a clear mobility of capital in all jurisdictions, talent between jurisdictions. There is no reason for someone to stay with any country and any stock exchange.”
“There is space for more than two exchanges in this country,” he said. “There may be more spaces, because everyone will bring their unique point of sale.”
The exchange approach is now in the client’s delight, after having worked to make vibrant vibrant and add more corridors, foreign portfolio investors (FPI) and data centers in the last two years.
Regulatory changes
The BSE chief welcomed the recent adjustment of six sebi points of the futures and options market (F&P), since it had the desired effect of stopping the Heed activity, which was attracting investors who did not understand the risk.
In the change of proposition of Sebi to an equivalent method of futures to calculate the open interest in capital derivatives, Ramamurthy said the industry widely supports the idea. However, questions remain about “how it will be measured, disseminate, how often, the number against which it will be monitored and any action that emanates for any brave atypical,” he said.
On diversity in corporations compensation, possible complications marked around shareholding, financial independence and fixed capital requirements could “make life easier or difficult”, depending on the final implementation.
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Read the full interview here
Posted on April 21, 2025