Chauhan says 8 crore direct investors has joined stock markets in 3 years
The Indian capital market has shown resilience in testing times and has become the most advanced and progressive marketplace globally, says Dr. Bhagwat Karad, the Minister of State for Finance.
“It is quite heartening to note the capital market resilience,” told participants at the recently organised National Workshop on ‘Capacity Building on Critical Areas of the Primary Market’.
“The role of AIBI and merchant bankers is notable in contributing towards the orderly development of the Indian capital market,” he said.
Meanwhile, all stakeholders at the workshop agreed that there is a need to work together more closely for simpler IPO documentation and processes for capital formation, according to Mahavir Lunawat, Chairman of Association of Investment Bankers of India.
“In today’s workshop, we had a meaningful dialogue on the role and expectations of regulators, stock exchanges, merchant bankers, law firms, and data providers in making the primary market more robust and transparent.
“We collectively identified the need for capacity building, bringing more momentum in advocacy campaigns for financial literacy, enhancing transparency and good governance, and boosting investors’ confidence.”
Lunawat elaborated, “Along with market intermediaries, the body of merchant bankers will continue to advocate the orderly growth of capital market, keep interest of investment bankers aligned and enhance investor awareness and promote best practices via strategic measures.”
“Today, we have eight crore direct investors in the stock markets. Gone are the days when investors were afraid of investing in stock markets,” added Ashish Chauhan, MD & CEO of National Stock Exchange.
Most of the new investors have come over the last three years, during Covid and post-Covid, he informed.
He informed that mobile phones and mobile applications have helped wherein now more people are saving through the stock markets.
“These eight crore investors are actually five crore unique households which is 17% of India’s all households put together that are directly investing in Indian stock markets.
“And largely, their entry is through IPO markets. I commend AIBI and all its members for ensuring that capital formation remains the most important pillar of running of capital markets,” said Chauhan.
Going forward, AIBI said in a release on 2 Nov that it will continue to work on identifying desired practices and processes that must be adopted for larger and faster capital formation which is the most critical tool for achieving ease of doing business and in turn contributes to nation-building.
AIBI said that it will also be analyzing IPO processes, the timelines involved, and how the same can be streamlined while meeting regulatory expectations.
Members of AIBI which is the investment bankers’ sole representative body to SEBI and various statutory authorities, discussed what critical roles regulators, stock exchanges, investment bankers, and other related market intermediaries must play and what is expected from each of these stakeholders during capital formation processes. Fiinews.com
