On Friday, Nirmala Sitharaman, India’s finance minister, shared her view about the market. Even though stock prices have significantly changed recently compared to the global market, the Indian market “has kept its sanity.” In other words, the Indian stock market is stable and hasn’t gone crazy.
She says it’s better to refrain from introducing new rules or regulations and let the market and investors do their thing.
SEBI New Rule
The head of SEBI recently said that stocks of small and mid-cap companies are going up too much beyond their actual value without any good reason. SEBI is concerned about this and is considering introducing new rules or guidelines to control the issue. The regulator is worried about this bubble forming in the market for mid- and small-cap companies.
SEBI New Rule: Know What Is It?
Although Nirmala has complete trust in the market and suggests it should be left untouched, India has kept its sanity compared to the global market. It will make sensible decisions on its own.
Nirmala Sitharaman On Crypto
The finance minister also talked about cryptocurrency, and from India’s stance, it can’t be considered an official currency but an asset. It is not like the money issued by the central bank or government.
The currency that the government issues has complete control over it. Since cryptocurrency can be created and issued by anyone using technology, it can’t be treated the same way as issued currency.
India is staying caught up by cryptocurrency. She said that since cryptocurrency moves around a lot, it is being used by people for illegal activities and money laundering. It will require a global framework to regulate cryptocurrency, and it works on one with countries from the G20.
Countries need to have the same set of rules; if a country has stricter rules and others don’t, then there is a threat of money being moved across borders illegally. That’s why these discussions are happening at the global level to come up with a standard set of rules and regulations.
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