The changes in taxation of transactions in futures on equity and commodity underlyings

Taxation of transactions in India began with the equity market in 2004. Prior to 2008, the securities transaction tax (STT) was allowed as a rebate against tax liability against Section 88E of the Income Tax Act. This treatment was withdrawn by the 2008 Budget announcement. After that, STT became a substantial influence on the . . . → Read More: The changes in taxation of transactions in futures on equity and commodity underlyings

The rise of high-end finance work in India

Until recently, outsourcing by global financial firms to India conjured up an image of commoditised low end services outsourcing: call centres, peripheral systems programming, and testing and maintenance. However, in recent years, there is a new rise of more sophisticated work. This reflects supply and demand factors. Global financial firms are keen to cut . . . → Read More: The rise of high-end finance work in India

Rupee and Real futures at ICE

Intercontinental Exchange has announced cash-settled futures on the Indian Rupee and the Brazilian Real [press release] [Saabira Chaudhuri in the Wall Street Journal]. With this, ICE is the first serious global exchange to start trading in the rupee.

Vimal Balasubramaniam and I have pointed out that the global market for the Indian rupee is adding . . . → Read More: Rupee and Real futures at ICE

Trading in the rupee: Starting to look like serious numbers

by Vimal Balasubramaniam and Ajay Shah.

The rupee-dollar is the most important price of the Indian economy. It is discovered on the currency market. What are the contours of this market? Specifically:

How big is the daily trading in the rupee? Where does the rupee stand, in global rankings of currencies? Where does trading . . . → Read More: Trading in the rupee: Starting to look like serious numbers

Hollowing out of the Indian financial system

Business as usual, in India, is taking us to a destination where RBI & SEBI & company will preside over a minor and inconsequential financial system. The bulk of India-linked finance will take place overseas, and the overseas market will dominate price formation for India-related financial products.

Why might this happen?

Finance is the . . . → Read More: Hollowing out of the Indian financial system

Protest what?

I have looked at this a lot, but never had a reason for posting about it.  So now I note Bram passed on the image that highlights the conundrum going on Downtown and elsewhere as folks struggle to figure out where to focus their anger. It reminded me of  what may be the ultimate financial . . . → Read More: Protest what?

Gold And Silver Continue Consolidating Before The Next Upleg

The balance sheets of banks have derivative singularities sucking in any equity that passes near the event horizon.

The world is in commotion but the precious metals markets are in forward motion like never before. Both the Eurocrat’s totalitarian dream and Euro are evaporating while the Damocles sword of credit default swaps hang . . . → Read More: Gold And Silver Continue Consolidating Before The Next Upleg

Interesting readings

A nice story about UIDAI, by Lydia Polgreen, in the New York Times.

A new insight into India’s north-east states: they are part of a region provisionally named Zomia. An interesting article in the Chronicle of Higher Education by Ruth Hammond. The book.

On 21 April 1956, Jawaharlal Nehru did the first convocation . . . → Read More: Interesting Readings for September 20, 2011

We are flies in a bullion bank web

I left this comment on the FOFOA blog:

Your point about bullion banks having the best intel is important. Bullion banks are like spiders in the center of a web. They can feel the twitching of the flies in the web and determine the mood of the market better than anyone else and often . . . → Read More: We Are Flies in a Bullion Bank Web

A big step forward on interest rate derivatives

For the backdrop, here are two key facts. First, the dismal failures of policy in the field of interest rate derivatives has led to a peculiar situation where substantial trading on the INR yield curve now takes place outside India. Second, while RBI has permitted one exchange traded interest rate derivatives, there are a . . . → Read More: A Big Step Forward on Interest Rate Derivatives