G-secs are relatively safe as they have sovereign backing and assure fixed returns. However, they, too, aren’t devoid from volatility, as they are subject to interest rate risks.
Tyagi said equity markets
are geared up to support the dream of a $5-trillion economy. However, more work needs to be done on the debt market front. “Despite a record sell-off in March, there were no defaults in payments. This is demonstrates the strong fundamentals and systems of the equity platform,” Tyagi said.
India Inc leaders hailed Sebi
and Tyagi for working without a break, ensuring market stability and providing much-needed relaxations over the past few months.
In recent months, Sebi
has extended several deadlines that are applicable to listed firms as well as market intermediaries such as mutual funds and alternative investment funds.
When questioned about whether Sebi plans to extend some of these deadlines further, Tyagi said: “All relaxations have a sunset clause. Sebi will take a call on whether to provide further extensions as and when required.”
On the issue of direct overseas listing, Sebi said no company has come forward with the proposal of dual listing, yet.
The Sebi chief said it needs to be examined whether brokers can be permanently allowed to work from home. In March, Sebi had allowed broking houses to operate their trading terminals remotely.
“It was a temporary measure. However, considering the success, it needs to be examined carefully. The downsides of this also need to be considered,” he said.
Some players have proposed geotagging terminals so that remote access along with accountability is possible.
Tyagi also said Sebi is supportive of the use of blockchain technology for real-time settlement of trades. He said exchanges need to use blockchain on a trial basis.
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