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The Internet and mobile trading have put huge power in the hands of investors, said Ravi Varanasi, Senior Vice-President, National Stock Exchange.
Speaking at the Business Line Investment Opportunities Fair here today, Varanasi said initial apprehensions about using the electronic marketplace are slowly vanishing as investors grow more comfortable with accessing and analysing information on various trading devices.
Right product, price
“The electronic platform has taken the capital market to the doorsteps of investors, with great transparency. The NSE has over two lakh (electronic) terminals across the country. Investors are now able to get the right product for the right price.”
Around 10-12 per cent of the total trading today happens on the Internet; an average daily turnover of Rs 500 crore on the NSE happens on the mobile phone, said Varanasi.
Varanasi said stock exchanges and regulatory authorities not only want to protect investors from possible trouble, but have also taken steps to empower investors by telling them their rights and obligations vis-à-vis the capital market.
Apart from organising road-shows and investor awareness training programmes, the stock exchanges and SEBI (Securities and Exchange Board of India) provide comprehensive, transparent documents so that investors can study the various products in the marketplace, across the risk spectrum. Several analytical tools are available online for investors to do their own research, he said.
“We also conduct third-party research of stocks not regularly covered by analysts.”
Govt tie-ups
At the grassroots, the NSE has tied up with the Governments of Tamil Nadu and Kerala to offer training in financial planning as part of the school curriculum. It also has an arrangement with the National Council of Educational Research and Training to conduct programmes with universities. The NSE also offers certification courses for individuals.
“Investor awareness is important since in India, over 50 per cent of trading comes from retail investors, unlike in markets such as the US and UK, where institutional investors form the bulk.”
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