FM Chairs Pre-Budget Consultations: Financial Market Players Share Their Views & Gave Suggestions
Welcome you tune into News now with me Ankita Saxena. Well, a finance minister shared the pre budget consultation meetings. Financial market players have presented their views to the FM. My colleague Ankur Mishra joining in with more details of what was presented. Over to you, Ankur. Yes, Finance Minister definitely held a meeting with the representatives of the financial sector and the constituents of the participants were from capital markets as well as banks, NBFCS and other financial sector. Now the important news which we have understood through sources is that there was a suggestion from industry to increase STT on high frequency trades in FNO. We also try to understood whether or not there was a discussion on discouraging the retail participants in future and options through living through living any kind of extra, extra tax. But we were told through sources that there was no such discussion on discouraging FNO traders, that is retail traders through taxes. All in all, there were also suggestions on financial inclusion. Remember there were there were comments which were given by Reserve Bank of India Governor Shaktikanta Das that as far as the stability of financial sector is concerned, FSDC which constituents of RBI as well as Sebi is definitely watching those explosion in FNO trades and the volume which may be more than the GDP. If you talk about the exact numbers, the derivatives turnover has grown 23 times in last five years. If you talk about the numbers latest by March 2024 and this number has already touched 80,00,000 trillions till the end of March. So All in all there was a wide anticipation in the market whether or not there will be extra tax which will be coming in the budget. But industry has suggested that increasing STT is an option for high frequency traders. Alright I'm good, thank you so much for giving us a low down on that. On the pre budget consultations we will be watching out for of course the budget. This is the big budget after the Modi 3.0 government was sworn in. If you like this video then like, share and subscribe to ET Now.