Hyderabad, Nov. 19
CLOSE on the heels of the stock market recovery after a minor crash connected to penny stocks, the Securities and Exchange Board of India has decided to educate small investors across rural India to adopt risk management and containment measures.
"The SEBI has ensured a robust trading infrastructure in place and has also taken necessary steps towards protecting the integrity of the markets. The idea behind investor education is to enhance the penetration of retail and small investors into the stock market with high confidence," the SEBI Executive Director, Mr R.K. Nair, said.
Addressing an investor education programme organised by the Hyderabad Stock Exchange (HSE) here on Saturday, Mr Nair said the market regulator is planning to conduct investor awareness programmes in semi-urban and rural markets in a big way across all the States.
Further, SEBI is also planning to organise education programmes for journalists. The idea is to educate journalists on the functioning of the securities market so that reporting of the financial data improves. They can also understand the fundamentals of risk management and ensure wider publicity to the rights and responsibilities of investors, he said.
"Investor education assumes strategic importance. SEBI believes that an educated investor is a protected investor. That is why we have taken up the programme of empowering the investors through education campaigns. The focus would be on encouraging investors to adopt risk management and risk containment instruments based on their age, income levels and expectations on returns," Mr Nair said.