SEBI Chairman Tuhin Kanta Pandey predicts the next wave of retail broking will come from towns and villages, encourages brokers to guide investors and introduces concerns about unregistered advisers.
In a speech at the 16th International Capital Market Convention of Association of NSE Members of India – ANMI, SEBI Chairman Tuhin Kanta Pandey emphasized that the next wave in retail broking will not be limited to big cities but will also originate from towns and villages. Mr. Pandey stressed that good brokers do not just execute trades; they guide their clients. He also urged brokers to familiarize investors with various investment options beyond equity, such as bonds, REITs, or InvITs. The chairman expressed concern about approximately six in ten investors relying on unregistered advisers and so-called influencers. In an effort to educate the public, SEBI's campaign 'Samajh Se Investing Simple' has garnered over 15 crore views on social media and sent nearly 110 crore WhatsApp messages since its launch on October 5th.
Urging market participants to prioritize cybersecurity, Mr. Pandey warned that a single breach can erode trust across the system. He also highlighted India's economic growth projections of around 7 percent this year by the International Monetary Fund (IMF), primarily due to its large domestic market, steady reforms, and young population.
Mr. Pandey shared statistics on the current state of India's equity market capitalization at approximately 470 lakh crore rupees and Mutual Fund Assets Under Management (AUM) at around 83 lakh crore rupees. He also mentioned that there are over 15 crore unique investors in India, with foreign portfolio investor assets totaling about 74 lakh crore rupees.
The SEBI Chairman outlined the regulator's objectives to continue building a market that is simpler, deeper, and safer for both investors and market participants. To achieve this goal, SEBI is reviewing short selling and securities lending and borrowing to enhance liquidity and price discovery. Additionally, the regulator is developing frameworks for secondary trading in corporate bonds and implementing safeguards to prevent misuse of trading terminals.
Source:
Akashvani News
