Setting up an Exchange?
Setting up an exchange ,is something that intrigued me, when I saw up crypto exchange comming in. The equity exchange. The NASDAQ, NYSE. What would it take to set up those?
It turns out, there is a greater significance of these exchange platforms , it depends on the capital present there ,that makes the investments in these exchanges flourish. A country where the startup environment is struggling, IPO is struggling, there is a backdrop to the exchange setup there. India has had a history of having regional exchanges ,and lot of them failing. Leaving BSE to survive which is a merger of other small exchanges ,regional ones. BSE has companies on numeric codes,largely focused on forex trades. NSE is the only sucessful stock exchange in India .
Clearly the tech has ruled out in the favour of NSE, there is no need to have that close relationship with the client. When it comes to its history. This equity market has existed long from the Newton’s time, it is believed he lost some of his money in South Sea Company 1720, clearly unable to calculate the madness of the people. India has history of scams including Calcutta Stock exchange one.
Stock exchange is a winners all take industry. It is relatively easier to setup one in Africa than in India, all backed up by capital flow MCX and DGCX.
Recently a group of Indian founders petitioned to, make it easier to get listed to foreign stock exchanges, to access their capital, which would fuel the faster growth. Then read a counter article with the ones that earlier got listed haven't had much growth in their stock prices,it was rather a SHM like motion, unlike the ones in India, which have went to have a growth curve. As competition is myriadly high there. Its easily feasible best in region than in the world. It's a great thing to raise money, in turn of getting listed. And keep up with your stock, to prevent it being shorted, as an action of market correction.
I feel rather than showing the misery of some places, for kids to become more attentive towards themselves, it's a great idea to brief them about this market. Recently Nirmala Sitaraman said all is to be done by all ministries is to spend.