Capital market vision is important as it tells us where we want our
markets to head tomorrow.
At the recent 15 year anniversary of the SIBIU Futures Exchange, Romania, I [Mukul Pal] met Professor Gabriela Anghelache. She heads the Securities Market Commission for Romania and is a highly regarded woman for her efforts to develop the capital markets. Being well connected with capital market participants, she also queried me on my capital market vision and told me to ponder till we met the next time. On one side I was elated that my opinion mattered to her and on the other side it set me thinking. Capital market vision was more important than forecasting, trading, economic cycles, as it tells us where we want our markets (an embodiment of society) to head tomorrow.
The question took me back to the Bombay Stock Exchange training institute. My derivatives training started with the question, what is more risky a future or the spot. Being the basic program, I had to spend more than a few minutes explaining how a 20 per cent move on derivatives could wipe the trader out. The thoughts took me back to my early days with Nifty Futures. Many incidents flashed in front of me. Early 2000, I asked a senior colleague, Rajiv Handa from Indiabulls (brokerage house) early basement days.
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Author: Mukul Pal
