Skip to main content

MSCI will continue to get data for ETFs: NSE

By
MSCI will continue to get data for ETFs: NSE
The National Stock Exchange (NSE) plans to continue to provide data to global index providers, including the MSCI, to enable overseas investors to take exposure to the Indian market through their exchange-traded funds (ETFs). There were concerns among market participants on whether the domestic exchanges would provide data to index providers for creation of indices based on Indian securities or indices where Indian securities had weight of more than 25 per cent.
“The MSCI will continue to get data as long as it is not used to trade Indian derivatives offshore,” said Vikram Limaye, chief executive officer, NSE. “There have been concerns on liquidity building offshore. Some of the arrangements were not in best interests of Indian markets in the long term.”
Limaye delivered the opening remarks at a conference organised by the Asia Securities Industry & Financial Markets Association, an industry lobby for foreign investors. On February 9, Indian exchanges in a joint statement had announced that they would stop providing market data to any index provider for creation of indices or products which in part — with weight of over 25 per cent — or in full are based on prices of securities listed in India that may be made available for trading or settling of derivatives on any foreign exchange or trading platform.
Market players said the wording of the circular created some ambiguity on whether exchanges would provide data to indices such as the MSCI India, a popular index among foreign investors. The index is used by ETFs as well as for derivatives trading.“The exchanges will provide data to ETFs based on the MSCI India. However, offshore derivatives trading also take place on the MSCI India index.
The stock price data cannot be used for it,” explained an exchange official. India’s weight in the MSCI Emerging Markets and the MSCI Asia Pacific (excluding Japan) is around 8 per cent and 12 per cent, respectively. Meanwhile, the MSCI India index is fully based on securities listed in India. “We will iron out pain points for foreign investors. More (measures) are also expected from the Securities and Exchange Board of India. Want to make our markets competitive,” said Limaye. “There are various areas of markets that need to be developed furthe onshore markets need to be more robust.”
The Business Standard, New Delhi, 23rd February 2018

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more