Set up to ensure there is no monopoly and corruption at BSE a competitive exchanges was set up, and it was turning out to be the only default exchange. Thus funnelling all Indian traders/investors towards NSE.
They then instituted co-location of servers and created a way to front run all high volume trades. Thus along with HFT Algos they could skim the cream out of the daily volume of NSE Trades.
Thus they created a Kamdhenu for people in the Finance Ministry and Bureaucracy along with NSE top brass. They enjoyed a slice of the pie. The daily volume of NSE is in excess of Rs. 60,000 crores. A 5% of the daily volume they made about Rs. 3, 000 crores/day!!! Which tanslates to Rs. 66,000 crores a month and about Rs. 700,000 crores a year!!!
Looks like some of the biggest people in India across UPA and NDA are involved and everyone made a lot of money. They ensured that Regional Stock Exchanges were closed.
Now is there monopoly or healthy competition?
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