Investors are more confident in adapting technology and willing to embrace Technological Transformation: V S Sundaresan, ED, SEBI
5th August 2022, New Delhi: The entire world economy is going through challenging times, but with faster adoption of digital technology, Indian companies have managed to get an edge over others, stated Shri V S Sundaresan, Executive Director, Securities and Exchange Board of India (SEBI) at a national conference organised by the apex industry body, Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Speaking at the event titled - ‘Investor Protection, Education and Awareness’, Shri Sundaresan, stated that the interest rate has been hiked by 50 basis points by the Reserve Bank of India (RBI). “When the interest rate increases the market reacts adversely. However, the Sensex and Nifty have increased this morning. As a result, when this type of development occurs, it is extremely difficult for any common investor to determine why this type of development occurs and what the cause is,” he said.
Shri Sundaresan also highlighted the importance of awareness and education, which was being emphasized by this type of conference, as well as by regulators and industries.
The Executive Director (SEBI) also informed that SEBI is undertaking investor protection measures, training programs and initiatives to educate and make people aware about the regulatory policies and financial grievances. He said, “SEBI is conducting training programs and initiatives to empower investors by educating them about Depository, Capital Market Practices and Rights and Obligations of the Investor for safe financial services in an informed manner.”
He also stated that, according to a survey conducted by SEBI, nearly 75-80 percent of investors are aware of the digital redressal system where they can see updates on their complaints. “Another finding from the study is that people are hesitant to file physical complaints and prefer to log in and file their complaints online. So, this is another important finding for us as we move toward implementing all of the policies that will eliminate physical transactions. As long as physical transactions occur, there is a deficiency that creates more problems. As a result, investors are more confident in adapting technology and willing to embrace technological transformation,” he added.
He also suggested that the industry is also expected to play a responsible role in order to educate the investors and help them understand the risks associated with financial products or how they would benefit them.
Shri Lav Chaturvedi, Chairman, National Council on Capital Market, ASSOCHAM & Executive Director & Chief Executive Officer, Reliance Securities gave his welcome address and shared his thoughts on challenging times that has affected businesses in domestic markets as well as made the capital market volatile. He said, “Indian market has been resilient in stability perspective as India accounts for 100 million Demat accounts. The tides have turned, and the market should have the confidence for the overall growth of the investor. We must ensure that investors should know the do's and don'ts of the market.”
He continued further, “India has tripled its growth from a volume viewpoint, and by 2025, it will rank among the top-5 economies. Because of the government, the Indian market has been the safest in the world, nonetheless, it still needs retail investors to expand and endure. Easy access, simple products, a disciplined approach to investing, investor confidence and trust so that they are protected and educated are the crucial factors to maintain the same position.”
Shri Nitin Jain, AVP- Valuation & Investment Banking, Resurgent India Limited appreciated the regulatory ecosystem for benefiting investors and the economy in the long run. He added, “The investor should be made aware of the investment ecosystem before becoming an investor. The initial stage process and knowledge are critical because the ultimate goal is investor protection. For the overall ecosystem to develop more effectively, steps must be taken early in the primitive stage.”
According to Shri Suyash Sharma, Director of Physical Shares Solution Private Limited, product innovation is boosting investor confidence, and end-user concerns should be prioritised. "We must assist novice investors who are unsure how to get their physical shares into Demat account and how to make the ecosystem more transparent and risk-aware," he added.
The new normal has been forged in its place and is characterized by unprecedented tech transformation, according to Shri Nehal Vora, Managing Director & CEO, Central Depository Services (India) Ltd. (CDSL). He also discussed recent market developments and different phases of the pandemic that altered thinking and business practices. The use of technology in operations has increased and the Indian securities market has benefited from cutting-edge infrastructure. It is remarkable how investors' markets haven't stopped despite the pandemic, he appreciated.
He demonstrated how SEBI's vision for growth and shift in technology has made it possible for key stakeholders to stay safe and carry on as usual. Calculating the digital Atmanirbhar journey, there has been an increase of 200% from the pre-pandemic level in the Indian Securities Market with 68% in the age-range of 20-39 years and increasing engagement from women and students are just a few examples of how quickly investors market has evolved. He noted the increased participation from Tier-1 and Tier- 2 cities.
During his vote of thanks, Shri Hitender Mehta, Senior Member - Managing Committee, ASSOCHAM and Managing Partner, Centrum Legal said regulators have played a major role in monitoring financial transactions and avoiding data threats or cyber-attacks and adapted REG-TECH trend. He discussed how to harness digital protection and improve investment services. Demographic and gender trends are valuing the institutions' commitment to the market infrastructure. There is an increased accountability for cyber security, investor protection, and investor empowerment.
At the same event, dignitaries released the joint knowledge report by ASSOCHAM and Resurgent India titled Investor Protection Education and Awareness.
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