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Broking industry must not bask in past glory even as it has played a huge catalytic role in the growth of Indian capital markets in recent decades, Ashish Kumar Chauhan, Managing Director & CEO, National Stock Exchange (NSE) has said.
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There must now be concerted effort by the Broking industry to bring 100 per cent of Indian households into direct equity investing, Chauhan said at the 13 th International Convention of Association of Exchange Members of India (ANMI), a national level industry body with nearly 1,000 broker members.
Chauhan, who was part of the founding team of NSE in 1994, noted that about 20 per cent of Indian households now directly invest in stock markets.
“It is all your hard work. It is good you have reached this milestone. But now don’t bask in your past glory. You have to make it 100 per cent. That is where we have to go”, he said.
trust and compliance
If India has to grow, then it will have to do so on the back of this industry (Broking industry), he said, adding that it was also important for it to increase trust in the Broking fraternity as well as in the entrepreneurs that raise capital through capital markets.
“Our job is to maintain trust first in ourselves. That’s why even by mistake, don’t make mistakes. Don’t do anything that takes away the trust of people in Broking community”, he said.
Chauhan underscored the need for Broking community to completely abide by every regulation framed by the market regulator SEBI exchanges or any other government authority. This is because every regulation is intended to increase trust in the capital market system.
Noting that modern framework allows one to create wealth without putting too much money, Chauhan highlighted that new capitalism is “capitalism with very little capital”. The Broking industry has to help young entrepreneurs to raise capital using technology. “ Trading is one part, derivatives is one part. First and foremost, we have to learn to raise capital for our young entrepreneurs.
That is the minimum requirement for India to grow. Some of those entrepreneurs will make lot of money for themselves and their investors. Some of them will also go down”, Chauhan said.
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If India has to grow to $ 50 trillion of market capitalisation by 2047, it will come on the back of technology driven young Startups, Chauhan said.
Over the last thirty years since its inception, NSE has seen the number of individual investors rise 45 times from 20 lakhs, the wealth created (market capitalisation) in rupee terms by 95 times to nearly $ 4 trillion.
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