The Hindu Business Line : Retail investors

Prospective investors who look upon the stock market with apprehension will find cheer in the report "Kotak securities launches scheme for small-time retail investors" (Business Line, August 11).

The retail investor feels neglected by the broking houses, which tend to pay scant attention to them on account of their low volume of transactions.

Moreover, not all retail investors have the skill and knowledge to trade, and brokers are loath to educating them.

The recent surge in the stock market has tempted retail investors and the trend seems to be in his favour. The broking houses should pay more attention to such investors by advising them on wise investments and providing timely tips, within the framework of SEBI guidelines.

The `auto invest' scheme should take the retail investor into confidence.

SEBI should initiate proper steps to bring down the brokerage and other charges, that amount to nearly two per cent for purchase and sale of a scrip. More participation by the retail investors could make the market more vibrant and reduce its volatility.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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