Competition is very important for improving efficiency. Efficiency in the financial markets leads to efficiency in the real economy. Hence, a competitive environment is very important for a developing economy. However, few insecure minds in power could not handle the competition posed by the rise of FTIL group and instead of improving themselves chose to eliminate FTIL.
The result was that MCX which enjoyed market leadership in commodities derivatives now is vastly reduced in business. MCX-SX which had the potential to emerge as a major national stock exchange is now living off drawing reserves to survive with no business worth to its name. All the international exchanges could have been useful for Indian businesses and investors in getting access to a wide range of global investment opportunities.
All this has been greatly eroded due to the vengeful action of the nexus. The nexus has only acted as a detriment to the economy of India. They are the true anti-nationals.
To understand how all this has affected India’s economy, one must read Shantanu Guha Ray’s book ‘The Target Book’.
For more information check The Target Book Reviews.