Indian Officials Plan a National Market System
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BOMBAY, India — In the wake of India’s worst financial scandal, stock exchange officials have agreed to set up a national stock market system linking the country’s major exchanges.
After a two-day meeting in Bombay that ended Saturday, exchange presidents said they had agreed to move toward establishment of a national trading system that could eventually link the country’s 21 stock exchanges.
They did not spell out a timetable because the links depend on the installation of computers and communications. The officials considered a series of reforms to improve market efficiency, protect investors and curb insider trading.
Stock prices in India nose-dived in April following a $1.2-billion securities scandal involving brokers and bank officials.
Officials at the national meeting agreed to extend trading at the exchanges to three hours from the present two, strengthen protection for investors, reinforce penalties for brokers guilty of malpractice, and speed up settlement periods for transactions.
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