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‘Manipulation, perversity in stock markets needs to be checked’ (Lead)
New Delhi, Aug 28 (IANS) The financial vulnerabilities of the stock markets resulting in manipulation and perversity needs to be checked in order to promote fair and ethical trading practices, Finance Secretary Ashok Lavasa said on Monday.
“There is a dilemma between what technology and manual trading can provide. Increase of algorithm trading should not prevent people from participating in the stock market,” Lavasa said here at a seminar on ‘Policy and Regulatory Framework for Algorithm/High Frequency Trading in India’.
“But manipulation, perversity in market needs to be dealt with. Financial vulnerabilities are to be dealt with,” he said.
The seminar was jointly organised by the Department of Economic Affairs and the National Institute of Financial Management.
In India, 50 per cent of trading is through algorithm trading, which reduces transaction cost, brings liquidity and benefits short term traders.
Lavasa said that the Indian stock market has matured and is hailed as one of the most powerful in the world.
“As we move forward, we are talking of more equity. So, it needs to be regulated and managed in a transparent way. It should have reliable infrastructure to involve more and more participants,” he added.
Algorithm and high speed trading are two crucial factors of stock exchange trading. Asian countries were the first to introduce high frequency trading.
Economic Affairs Secretary Subhash Chandra Garg, who was also present at the seminar, said that algorithm trading is becoming more important and significant.
“Data, math and logic are key elements of algorithm trading. Over the last few years, the capacity and data available to build algorithm is tremendous,” Garg said.
He said that on the policy front, the government needs to ensure non-discriminatory and equitable and fair access to all the market participants.
“The policy question is whether we can provide equitable market access to machine (algorithm trading) and manual trading space. In algorithm trading space, institutional players also should be assured non-discriminatory and equitable policy,” he said.
Garg said that the basic objective of market participants is to maximise wealth and there was nothing wrong about it, but there was need for regulations to facilitate and protect traders and prevent disruptions.
“Ability to write algorithm can be used to create disruptions. There is need for polity to control risky and non-competitive algorithm. Policy should focus on how to facilitate right kind of algorithm to maximise profit,” he said.
While focussing on these practical aspects, it is advisable to have the kind of technical capability required in stock exchanges, he said.
“We need to constantly catch up in technology, if not stay one step ahead,” he added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.