Congress plays up Uday Kotak's warning, pushes for total overhaul of Sebi
Congress party has underlined the urgent need for professional regulation of Indian financial markets and pushed for a comprehensive overhaul of the Securities and Exchange Board of India (SEBI). The party also called for an unwavering commitment to developing global manufacturing ecosystems across various technology sectors to establish distinct niches for India.
Trump-Modi Meet
The mega MIGA, MAGA plans of India's Modi and US' Trump
Trump says India has more tariffs than others
Trump's 'golden rule' for imposing reciprocal tariffs
Jairam Ramesh, Congress general secretary in charge of communications, shared a media report on social media platform X that highlighted comments from Uday Kotak, founder and director of Kotak Mahindra Bank. Kotak expressed concern that excessive financialisation could negatively impact the Indian economy, as investors increasingly pour their savings into equities without a clear understanding of valuations.
Ramesh pointed out that India's stock market capitalisation is currently around 140 per cent of its GDP, referencing a warning given by the Chief Economic Adviser in the Ministry of Finance on September 2, 2024. The CEA had cautioned that the increasing profitability of the financial sector, along with high market capitalisation, necessitates closer scrutiny.
Ramesh quoted the CEA, saying, «When the market becomes bigger than the economy, it is natural, but not necessarily reasonable, for market considerations to dominate public discourse and influence policy.»
Banking sector
