In the modern market economy, a stock exchange will be accounted among its most visible icons. Its engagement with general populace is smooth and seamless. Entry and exit in stock trading is easy even for the first time investor. Media loves it, as it can provide daily stream of juicy stories behind high and lows of the stocks. With big money flowing, its operators enjoy strong support among sections of government and corporate sector. In this favorable environment, it is never easy to challenge the conventional wisdom of equating local stock market as the barometer of our economy. Any effort on inducing more competition or pro-market reforms in the local stock market can easily be thwarted by a nexus of state and brokers. Purpose here is not to contest the efficacy of stock market in a country’s economy, but to stress upon the rent-seeking structure of local stock exchange.

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To read more, click here: Position Paper on Stock Exchange

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