Perils of Overemphasis on Secondary Trading

In India, arbitraging and speculation in stocks and other instruments are today far beyond the proportions prevalent in advanced and healthy markets. There is therefore a need for debate on the unmitigated increases in secondary market transactions, on the relevance of individual stock futures, on the role of hedge funds as part of inflows of portfolio funds and on the shortening of settlement periods beyond a point. On all these areas, those familiar with the intricacies of the working