SEBI Chairman Tuhin Kanta Pandey today said that the next wave in retail broking will not come from the big cities alone but will come from towns and villages.
Addressing the 16th International Capital Market Convention of Association of NSE Members of India – ANMI, Mr. Pandey said, the best brokers do not just execute trades, they guide. Stating that KYC must be treated as “Know Your Client’s Needs”, SEBI Chairman said a client who understands risks invests wisely and stays invested longer.
He further encouraged brokers to introduce investors to choices beyond equity like a bond, or a unit of a REIT or an InvIT.
Raising serious concerns that about six in ten investors rely on unregistered advisers and so-called influencers, Mr. Pandey said SEBI’s campaign “Samajh Se Investing Simple” has drawn over 15 crore views on social media and sent close to 110 crore WhatsApp messages since its launch on 5th October.
Urging market participants to treat cyber security as a business priority, not an IT expense, the SEBI chief said a single breach can shake trust across the system.
Stating that the International Monetary Fund – IMF expects India to grow at about 7 percent this year, which is more than twice the global pace, Mr. Pandey said, the prediction is largely due to the country’s young population, large domestic market and steady reforms.
He informed that India’s equity market capitalization stands around 470 lakh crore rupees while Mutual Fund Assets Under Management – AUM stand around 83 lakh crore rupees.
With over 15 crore unique investors and a foreign portfolio investor assets of about 74 lakh crore rupees, Mr. Pandey said the aim is to keep building a market that is simpler, deeper and safer, for investors and for market participants.
In that direction, the SEBI Chief said, the regulator is reviewing short selling and securities lending and borrowing to improve liquidity and price discovery.
He added that a framework is being developed to lift secondary trading in corporate bonds and another to put in place safeguards to prevent misuse of trading terminals. Mr. Pandey said SEBI is also exploring an AI sandbox, where new tools can be tested safely.
