The ongoing volatilty in the equity market is likely to continue for some more time, Sebi Chairman Ajay Tyagi told a presser on Saturday. However, retail investors are doing the right thing by investing in mutual funds.
He said It would be incorrect to say that the market would not be impacted at all by LTCG.
Market sentiment turned jittery after Finance Minister Arun Jaitley announced long-term capital gains (LTCG) tax on equity in Union Budget 2018 unveiled on February 1, 2018. The Budget proposed to tax LTCG on equities exceeding Rs 1 lakh at 10 per cent.
At present, benchmark equity index BSE Sensex, BSE Midcap and Smallcap indices are down nearly 7 per cent, 9 per cent and 10 per cent, respectively, from their all-time high levels, which they touched in January 2018.
Commenting on LTCG, Tyagi said the markets were booming and it was an opportune time to introduce LTCG. "However, we have not received any representation from investors on LTCG."
Market regulator has plans to come out with regulations this year for corporate bond market. He further added that regulations on Budget announcement for corporates raising 25 per cent from bond market will be issued in September.
"Corporate bond market has been a good story . We will come out with guidelines for deepening bond market by September 2018," Tyagi added.
On the extension of market timings, he said, "We haven't applied our mind on extension of market timings."
Domestic exchanges — BSE, NSE and MSEI — on Friday said they would stop operating their indices on international bourses.
Currently, domestic exchanges through licensing or other arrangements can create indices based on their market data which could then be licensed to foreign stock markets for trading and settlement.
On the announcement made by exchanges, Sebi Chairman said, "The decision to stop trading of indices on offshore bourses is a commercial decision. Objective seems to be liquidity does not get split with foreign bourses."