Securities Trading in India: The Journey to a Developed Market
Report Summary
Securities Trading in India: The Journey to a Developed Market
India’s regulatory and electronic trading environment is attracting foreign investors, but there is still plenty of progress to be made.
Boston, September 19, 2012 – A new report from Aite Group provides an introduction to the capital markets in India. It describes the major indices in the Indian equities market; introduces regulation pertinent to foreign investors; and portrays the market structure, presenting major execution venues. The report is based on Aite Group interviews with execution venues, broker-dealers, buy-side institutions, technology vendors, proprietary trading firms, and industry organizations.
Since the financial crisis, investors have been looking to emerging markets to generate returns—specifically, many have turned to BRICS nations, which are enjoying generous growth in their capital markets. China and India both command investor attention among BRICS countries, but whereas China restricts foreign investment, India’s capital markets have evolved to welcome foreign institutional investment. Regulation in India has evolved heavily over the last two decades since the birth of its capital markets regulator, SEBI, which has created a regulatory environment that prescribes foreign investment and electronic trading.
“India’s securities market has a lot to offer foreign investors, including diversified trading flow and competition among execution venues,” says Simmy Grewal, senior analyst with Aite Group and author of this report. “Investors and other potential stakeholders should tread cautiously, however. India is still an emerging market, its high frequency and algorithmic trading are in nascent stages, and its technology infrastructure is still being developed to reach levels seen in the United States and European Union."
This 59-page Impact Report contains 32 figures and six tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.