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Representatives of capital markets on Tuesday pitched for reductions in transaction tax and measures to deepen the financial sector in the upcoming Budget. Suggestions regarding improving efficiency of capital markets and increasing capital market inclusion were also made during the pre-Budget meeting with Finance Minister Nirmala Sitharaman, sources said. Representatives of the sector sought lower Securities Transaction Tax (STT) on cash market trade as compared to derivatives, sources said. This was the fourth pre-Budget meeting between the finance minister and representatives of capital markets, including BSE, Multi Commodity Exchange, Association of Mutual Funds in India, Association of Registered Investment Advisers, and Commodity Participants Association of India. Capital markets facilitated resource mobilisation of Rs 14.6 lakh crore in FY25, marking a 33 per cent increase over the previous year. The use of a broad spectrum of financial instruments -- ranging from equity an
With an increasing number of savers stepping into the capital markets, Sebi Whole-Time Member Ananth Narayan on Tuesday highlighted that cyber threats, market volatility, and a trust deficit in the financial ecosystem could pose significant challenges to this growing investor trend. Over the years, the number of unique investors in India's capital markets has risen sharply from 4.2 crore in March 2020 to 13 crore to date. Despite this remarkable growth, there remains considerable room for further expansion. While acknowledging the rise of domestic investors, Narayan stressed the importance of addressing the challenges to sustain the momentum. Among these challenges, he noted that risks such as cyber risk and digital frauds are a serious concern. Fraudsters-- often sophisticated and organized-- prey on unsuspecting investors, making cybersecurity a key area of focus. Alongside this, investors need to be fully aware of market volatility, he said, emphasising that market movements are
Capital markets regulator Sebi on Wednesday imposed penalties totalling Rs 40 lakh on eight entities for indulging in non-genuine trades in the illiquid stock options segment on the BSE. In eight separate orders, the watchdog slapped fines of Rs 5 lakh each on Dwitiya Trading Ltd, Vineeta Kabra, Puneet Sabharwal HUF, Hemant Purshotamdas Gopani HUF, Mudrikaben Pareshkumar Shah, Gopalkrishna Ratanlal Shah HUF, Prabir Saha, and Sudha Jain. The orders came after the Securities and Exchange Board of India (Sebi) observed large-scale reversal of trades in the illiquid stock options segment of BSE, leading to the creation of artificial volume. Thereafter, Sebi conducted a probe into the trading activities of certain entities in illiquid stock options on BSE for the period from April 2014 to September 2015. According to Sebi, reversal trades are the trades in which an entity reverses its buy or sell positions in a contract with subsequent sell or buy positions with the same counterparty.