Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Arvind Narayanan, Co-Founder, Enlearning skill development Pvt Ltd
- Mr. Rahul Dayal, Head- Information Technology, Aditya Birla Sun Life Mutual Fund
- Mr. Sandeep Gupta, Global Head- Partner Head & Management Acquisition, Visa Payments Ltd
- Mr. Ruchit Jangid, Former Business Head, SOTC Travel Ltd
- Mr. Manish Jeloka, Strategic Leadership Wealth Mgt, business transformation, and Pvt & Retail Banking, MJ Associates
- Mr. P B Prakash, Head-Financial Institutions Group, Indusind Bank
- Mr. Alok Karkera, Head – India Public Sector & North India Financial Institutions Group, Corporate Banking
- Mr. Sridhar R, former President & Credit Risk Officer, Lakshmi Vilas Bank
- Mr. Mukesh Bubna, Founder, Monexo FinTech Pvt. Limited
- Mr. Neeraj Chandra, Head of Operations and Technology, Abu Dhabi Commercial Bank
- Mr. Anutosh Bose, Executive Director- Asset Management, Nomura
- Mr. P D Singh, Former General Manager, Bank of Baroda
- Mr. Abhishek Arun, Chief Operating Officer, Paytm Payments Bank
- Mr. Abhishek Mody, Associate Director-Payment & Digital Initiatives, IDFC Bank
- Mr. Avro Mukerji, Investment Counselor- NRI Burgundy, Axis Bank
- Mr. Taufique Khan, Sr. Product Manager, NRI Products
- Mr. Sugata Ghosh, Associate Editor at The Economic Times, BCCL
- Mr. Prasanna Divekar, Principal, Renaissance India Partners
- Mr. Subbiaa Olimuthu, Product Manager – Rupay Product
- Mr. Yogesh Gupta, Former Head Online Remittances- Money2India International Banking Group ICICI Bank
- Mr. Piush Kothari, Head of Business Operation, Walt Disney Direct to Consumer & International
- Mr. Sameer Nemavarkar, Former CEO, Atos Worldline India
- Mr. Karthik Ananthakrishnan, Assistant Vice President, Kotak Mahindra Bank
- Mr.Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
While banks fail and a moratorium is imposed upon the banks then why not a similar thing is being considered when the stock market is going down. Rightly, so here are the questions raised by the FIAKS community
Question 1: Is it right on the SEBI side to still keep the market open with all that is happening around the world and in India?
Question 2: Can’t we halt the trading for a week so that there is no impact or very limited impact on the financial market?
Now, for a moment lets just imagine the impact if the Government decides to freeze 120,00,000 Crores of assets for a period of time:
- So Equity schemes can’t be redeemed if an investor needs the money
- If no investor is able to withdraw money (say for 15 days) in the time of urgent need due to this freeze. Will they ever come back in the future or look for alternates with guaranteed liquidity in extreme situations?
- Similarly, bargain hunters may not get a chance to pick good companies at a throw-away price.
- That would signal to foreign institutional investors that India is closed for business. We are seeing historical lows in foreign institutional investors and even the domestic HNI (high net-worth individual in India that is individuals who have more than 2 crores investible capital) investment would follow suit if we shut markets.
- Liquidity crunch would also worsen domestically, leading to further hardships. Liquidity short term damage, reputation long term, and permanent damage.
- It also affects your country rating if markets are shut for long since it technically tantamounts to stopping the flight of capital.
Now let’s dig down further in detail:
- It is said that stock markets are barometers of the economy, and rarely in the past, the markets over the world have been shut during big negative events.
- We are a part of the world market system and index funds/global funds are participating and if we close markets will lead to panic and will further slide. Even Spain and Italy have not closed markets and they are impacted more than us.
- Also, a member made a conjecture, ” I think as per international trading laws – markets can’t be shut. I could be wrong but global financial markets have an agreement to be kept on for international investors to access their funds.”
- The premise that by closing markets, there will be no impact is fallacious. Markets will go down even more once they reopen as we have to understand that our markets are impacted more by global flows and not domestic players. A member recalls, “That’s happened in the past. It was the Philippines. Once markets reopened they crashed in higher proportions. So it will be just deferring the inevitable.”
- Closing markets would do more damage as it will build anxiety and lead to bigger damage on opening. Just as essentials are allowed in the lockdown, a financial lockdown will send further panic.
- Around a million SIPs worth 8000cr get into the market monthly. Closing markets would be an injustice to them. Smart investors actually increase their investment during such times.
- Besides, historically markets have always recovered from such shocks, though it is unfortunate that most small investors typically tend to lose money during such times
- Also, securities are current assets. Why should investors who need money be denied the avenue to liquidate their own investment?
Now let’s hear out the viewpoints of the community members who are on the other side: REGISTER and READ the complete discussions