{"id":7008,"date":"2019-11-07T09:00:50","date_gmt":"2019-11-07T03:30:50","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=7008"},"modified":"2020-08-28T17:09:27","modified_gmt":"2020-08-28T11:39:27","slug":"blockchain-can-transform-trading-says-sebi-chief","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/blockchain-can-transform-trading-says-sebi-chief\/","title":{"rendered":"Blockchain Technology Can Transform Trading, Says SEBI Chief"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Blockchain technology can be a stepping stone in the advancement of the trading industry. In a recent event of commemorating the silver jubilee of the <strong>National Stock Exchange<\/strong> (NSE),&nbsp;the chief of Sebi urges <strong>stock exchanges<\/strong> to follow governance norms better than what they already preach to the listed companies. He also emphasises on the prohibition of using their oligopolistic position to charge excessive and unreasonable fees from investors. Moreover, he acclaims about the prospective of <strong>blockchain technology<\/strong> transforms the trading. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8b61a04ea\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8b61a04ea\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/blockchain-can-transform-trading-says-sebi-chief\/#Highlights_of_the_Whole_Story\" title=\"Highlights of the Whole Story \">Highlights of the Whole Story <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/blockchain-can-transform-trading-says-sebi-chief\/#Overview_of_Blockchain_Technology_transforms_the_trading\" title=\"Overview of Blockchain Technology transforms the trading\">Overview of Blockchain Technology transforms the trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/blockchain-can-transform-trading-says-sebi-chief\/#Final_Verdict\" title=\"Final Verdict\">Final Verdict<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highlights_of_the_Whole_Story\"><\/span>Highlights of the Whole Story <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>Here is an abstract covering all parts of the story to give you a precise picture of what happened in the event:<\/em><\/p>\n\n\n\n<ul><li>On Tuesday <strong>Sebi chief, Ajay Tyagi<\/strong><a href=\"https:\/\/twitter.com\/ajaytyagii\">[1]<\/a>  urged stock exchanges to follow governance norms better than what they currently preach to the listed companies. <\/li><li>He said that stock exchanges should not use their oligopolistic position to levy unreasonable fees from the investors.<\/li><li>The event happened during the silver jubilee of the National Stock Exchange (NSE). It has become a market leader since its inception and controls two-thirds of volumes by distorting the position of \u00a0144-year-old BSE with its electronic screen-based trading terminals in 1994.<\/li><li>In the event, enough prominence has given to the technology and how it can do wonders. \u00a0\u00a0Technology has made Algo trading possible, T+2 days settlements and holding securities in electronic format among many other things. Even in the future, too, technology shall continue to transform capital markets. <\/li><li>Ajay Tyagi affirmed that <a href=\"https:\/\/en.wikipedia.org\/wiki\/Blockchain\"><strong><em>blockchain<\/em><\/strong><\/a> technology transforms the trading by saying that it has the potential to revamp the process of trading, settlement &amp; clearing.<\/li><\/ul>\n\n\n\n<div class=\"shadow4\"><p><strong><a rel=\"noreferrer noopener\" aria-label=\"&nbsp;He said (opens in a new tab)\" href=\"https:\/\/twitter.com\/FinancialXpress\/status\/1191888754631311362\" target=\"_blank\">&nbsp;He said<\/a><\/strong>: \u201cThe fund management industry that has already taken the initial step with Robo advisory services, can look very different in future with the adoption of Artificial Intelligence &amp; Machine Learning.\u201d<\/p><\/div>\n\n\n\n<figure class=\"wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The <a href=\"https:\/\/twitter.com\/hashtag\/Sebi?src=hash&amp;ref_src=twsrc%5Etfw\">#Sebi<\/a> chief said that the <a href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\">#blockchain<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/technology?src=hash&amp;ref_src=twsrc%5Etfw\">#technology<\/a> had the potential to completely transform the trading, clearing &amp; settlement process. <a href=\"https:\/\/t.co\/FcpO8QnwEa\">https:\/\/t.co\/FcpO8QnwEa<\/a><\/p>&mdash; FinancialXpress (@FinancialXpress) <a href=\"https:\/\/twitter.com\/FinancialXpress\/status\/1191888754631311362?ref_src=twsrc%5Etfw\">November 6, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<ul><li>Besides this, the chief of Sebi also underlines the role of <strong>exchanges in governance<\/strong>. Tyagi states that the \u201cExchanges need to follow <strong>governance norms<\/strong> better than what they preach to the listed companies. While are <strong>for-profit commercial entities<\/strong>, they must refrain from using their oligopolistic position by putting out exorbitant fee structures.\u201d <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Blockchain_Technology_transforms_the_trading\"><\/span>Overview of Blockchain Technology transforms the trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the event, <strong>Ajay Tyagi highlights<\/strong> the <em>need to employ blockchain technology in regulatory functions of the trading sector<\/em>. He said that the <em>technology had played a significant role in transforming capital markets<\/em> til now, and has a bright future in the same. From <strong>Algo trading<\/strong>, settlement in <strong>T+2 day<\/strong>, accessible security flows\/ foreign fund to e-holding of securities, everything becomes possible because of technology. He also shared his views on the <strong>exchanges and capital market conditions<\/strong>, as mentioned below:<\/p>\n\n\n\n<ul><li>He said that an amount raised from the <strong>capital markets<\/strong> showcases the development in the economic zone.<\/li><li>A survey indicates India\u2019s market conditions where India has the <strong>capitalization to GDP of 78%<\/strong> which was far below from many developed countries of the USA and Japan that has a <strong>GDP of 150%<\/strong> and <strong>120% respectively<\/strong>. <\/li><li> In the past two years, the amount raised through capital markets reckons around `<strong>9 lakh crore a year<\/strong>, of which <strong>70-75%<\/strong> is in debt securities, and <strong>25-30%<\/strong> is in equity. Such amount is comparable to incremental trade disbursed by banks during this period. It demonstrates the growing clout of capital markets, Sebi Chief added.<\/li><li>Further Tyagi states that exchanges are the first level of regulation and that they have to be\u201c<strong>above board<\/strong>\u201d since they have the highest integrity in contrast to the brokers and entities. <\/li><li>The markets regulator accentuates on the development of a robust bond market. He said that the area requires a unified approach among regulators in the development of bond markets. <\/li><li>Also, considering the NPA (<strong>non-performing assets<\/strong>) position of banks, it calls for an urgent need to develop this market so that entrepreneurs have an alternate route to raise funds.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Verdict\"><\/span>Final Verdict<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many Entrepreneurs has availed the benefits of blockchain technology and enhanced their businesses. This advanced technology provides tight security, greater transparency,  improves traceability, increases the speed of transactions at minimal costs. So one can foresee that the blockchain technology transforms the trading system.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/what-is-securities-transaction-tax-a-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">What is Securities Transaction Tax- A Complete Guide<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Blockchain technology can be a stepping stone in the advancement of the trading industry. In a recent event of commemorating the silver jubilee of the National Stock Exchange (NSE),&nbsp;the chief of Sebi urges stock exchanges to follow governance norms better than what they already preach to the listed companies. He also emphasises on the prohibition [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":7010,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[546],"tags":[672],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/7008"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=7008"}],"version-history":[{"count":18,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/7008\/revisions"}],"predecessor-version":[{"id":12615,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/7008\/revisions\/12615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/7010"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=7008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=7008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=7008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}