When you have a problem, you don’t say ‘I’m a problem’
The government on Monday approved a proposal to allow online trading firms to sell stocks and bond futures.
The measure is aimed at helping India’s stock market stabilise, but critics say it does little to address the persistent problem of corruption and lax capital controls that plague the country.
The regulator, the Financial Services Authority of India ( FSIA ), said the proposal would be in place by July 1.
It said it would allow the firms to raise capital and provide a “one-stop shop” for investors to buy and sell stocks on the exchanges.
The FSIA said the proposed measures are in line with the central government’s policies to curb the illegal money flows into the country and to protect the financial stability of the country through a two-pronged approach: curbing money laundering and combating black money.
The agency said it was also looking at the need for further capital-raising measures.
“The regulator has taken note of the concerns expressed by the public regarding the possibility of illicit capital inflows into the financial markets,” it said in a statement.
“We have taken a comprehensive view of these concerns and are looking at how to address them,” the regulator added.
It is not clear when the government would implement the proposed changes.