Time ripe for Euroclear like model for gilt settlement: Experts

With the Reserve Bank of India (RBI) and the Finance Ministry is working towards a new platform for settlement of government bonds, on the lines of Euroclear and experts said time has come that the country's financial markets have evolved to adopt it Stock Market Trading Tips

The Euroclear system is the world's biggest securities settlement system with the central bank had indicating that they have been working towards allowing settlements of government bonds in the Euroclear like system.

RBI had said earlier that they were working on that to see if they could strike a balance between loss of liquidity in the local market, as well as providing ease of trading for overseas investors.

And earlier this month RBI deputy governor HR Khan said that the central bank was working on a fresh Euroclear like model with the government. Trading and settlement under the new model will be on RBI platform Himanshu Tiwari Astrologer

“This will certainly be a step in the right direction. This step is probably required and it is high time that they do it. Financial markets always evolves. Some sort of shortcoming may be there, but they will be tackled. This will be a step in the right direction for final evolution of the financial markets,” said Ashish Vaidya, executive director and head (trading and ALM), treasury and markets at DBS Bank.

The central bank had also said that under the new model it will be ensured that liquidity is not affected while Finance Minister Arun Jaitley had said that the government would be going ahead with listing Indian debt on Euroclear Financial Astrology

“In the instant case of taking the India government bonds markets offshore on RBI trading platform through settlement partnership with Euroclear platform is a step in the right direction. Foremost, it is great relief for existing foreign investors to operate from home markets without the need to go through the process of registration with foreign regulators. This will also result in broad base of foreign investors across risk and investment categories,” said J. Moses Harding, Group CEO, liability and treasury management, Srei Infrastructure Finance. 

Harding explained that the initial challenge will be from possible one-way interest in the market, be it on the buy side or sell side Indian stock market astrology prediction

“The issue will be on the capability to infuse liquidity either way to cut excessive price volatility. Given the fact that global cues have greater impact on the prices of India asset markets, there is no case to be get scared of from liquidity and price volatility. The challenge from managing the Know Your Customer (KYC) of participants and set up of robust settlement mechanism is not significant,” he said Stock Market Astrology