Business News | SEBI Executive Director Praises the Role of Retail and Domestic Institutional Investors
Get latest articles and stories on Business at LatestLY. Speaking at an event in Mumbai on Wednesday, VS Sundaresan said, "Ten years back, the market was completely driven by foreign portfolio investment (FPI). But now, no one sees that whether FPI is putting money or not and this is not affecting the market." He said due to that, the market is growing.
Mumbai (Maharashtra) [India], February 22 (ANI): Securities and Exchange Board of India's (SEBI's) Executive Director VS Sundaresan on Wednesday praised the role that retail and domestic institutional investors were playing in limiting the volatility in the market.
Speaking at an event in Mumbai on Wednesday, he said, "Ten years back, the market was completely driven by foreign portfolio investment (FPI). But now, no one sees that whether FPI is putting money or not and this is not affecting the market." He said due to that, the market is growing.
The executive director said this is a good sign and this is the process of capital formation.
"This proves that savings of Indians were being channelised into the market, which is becoming resilient in many ways."
The executive director said retail participation is increasing but investors have to be made aware. "Now, as nine out of 10 investors are losing money because of less margins, it means there is a lot of scope for investors' education," he said, adding that a different type of complaint was coming.
He said, "We need to improve standard of governance. This will increase the market size."
The executive director also asked Indian companies to evolve beyond the "litigation mindset", citing the adjusted gross revenue (AGR) case involving telecommunication firms to drive home the point.
"Why do we have this kind of litigation mindset? Isn't there a better way of resolving disputes? The time we are wasting in litigation can be diverted towards a productive purpose," Sundaresan said. (ANI)
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