The Hindu Business Line : Taking awareness programme to investors

The Association of NSE Members of India (ANMI) has proposed to organise nation-wide meetings with investors in association with the securities regulator and the National Stock Exchange.

ANMI, which has already embarked upon the programme in a selective manner, beginning with the South, intends to take it up in other regions. In the East, for instance, it has selected two centres — Durgapur and Burdwan — to host meets.

The Association, according to sources close to the development, plans to spread greater awareness among investors, especially so with regard to their rights and responsibilities.

“We have in the recent past taken a number of proactive steps towards development and growth of the capital market. The investor, who is actually the backbone of the market, should be fully aware of the critical aspects of the system,” a senior ANMI functionary told Business Line.

Skill-set focus

On another front, broking sources have pointed out that there should be more professionals with special skill sets, complete with the ability to serve the growing needs of the financial sector. This should be ensured by putting in place the right systems of training.

Training, it is felt, need not end with simply a certification. Instead, training should continue throughout the career of an individual. The latter should be able to meet the latest standards of the industry in the most professional manner. The industry, incidentally, has seen widespread poaching by competing firms. The attrition rates have been fairly high in recent years. This, in fact, underscores the need for more qualified personnel, the source added.

Factors at play

Several other factors have lately come into play, it is mentioned in this context. The average Indian is earmarking a greater portion of his surplus to securities these days. Younger people, given their levels of personal aspiration, have investments across asset classes, including equities. The trend has created additional business for broking outfits.

The country’s broking industry, it is pointed out, is a mixed bag these days, a situation underlined recently by a survey conducted by Dun & Bradstreet. The survey profiled over 200 brokers, ranked on the basis of the number of terminals present across regions. These had more than 43,000 terminals, accounting for roughly 90 per cent of the total.

Some of the highlights of the survey arethat a mere 3 per cent started broking operations before 1950, 65 per cent between 1950 and 1995, and 32 per cent after 1995. The cash and derivative market is the most preferred segment, with 35 per cent of the firms operating in it, the survey said. — Nilanjan Dey

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