tag:blogger.com,1999:blog-19649274.post114795822574619400..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Arguments on publicly traded exchangesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-1148149402837073012006-05-20T23:53:00.000+05:302006-05-20T23:53:00.000+05:30The fund management industry is a problem because ...The fund management industry is a problem because the typical customer does not understand how bad the proble m is. You can't sell a customer shoddy shoes. But you can sell him a shoddy financial product. ETFs and index funds do exist, but the trouble is that most customers listen to their agents, who peddle the stuff that pays them 7% fees.<BR/><BR/>NSE and technology - the glass is half empty/full. On one hand, NSE is right up there, after NYSE, as the 3rd biggest number of transactions in the world. That's cool, coming from a 3rd world country with a per capita GDP of $800. But when you actually look at the technology, it's pretty bad. A lot of design decisions were taken in ~ 1993, and it's hard for a big site to change. NSE is particularly bad on openness of data and feeds. But as `Arb' says, with no serious competition, BSE hasn't done better on these things either.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-1148015369142409332006-05-19T10:39:00.000+05:302006-05-19T10:39:00.000+05:301)Given the huge problems that you have pointed ou...1)Given the huge problems that you have pointed out about fund management in India, why haven't ETFs taken off in a big way. Are you aware of any regulatory issues that are preventing this product from taking off? I checked the NSE website and found just 3-4 ETFs that have been launched..ETFs can also play an important role in the pension system that you propose so that the transaction costs of fund management are minimized to a great extent...<BR/><BR/>2) Is the criticism by "Arb" in the previous post about the functioning of the NSE in terms of its technology correct? I was always under the impression, after hearing and reading from many sources, that the NSE uses technolgy that is right up there with world standards and that has been one of the key features in attracting FIIs towards the NSE...Free Thinkerhttps://www.blogger.com/profile/03724960238076985720noreply@blogger.com