Industry captains urged to make bold decisions
SEBI Chairman Ajay Tyagi has called for an increase in the participation of new retail investors in the capital market, citing the huge surge in participation of retail investors in the equity market in the last few months.
“The fact that there is also a surge in opening up of demat accounts suggests that many of these retail investors are perhaps first-time investors in the stock market,” he told the 17th Annual Capital Market Conference ‘CAPAM 2020’ organized by FICCI on 22 July 2020.
His advise to new investors it would be ideal that they begin their journey by first investing in risk free G-Secs and then move on smoothly to the capital markets,
The issuance of G-Secs in demat form, apart from easing the process of making investments by non-institutional participants in these securities, may also facilitate the easier raising of the borrowings.
In order to further improve the corporate bond and G-Secs market, Tyagi said that there is an inter-linkage between the corporate bond market and the G-Sec market.
The required reforms in the corporate bond market should be brought in without any further loss of time, he pointed out.
Unification of financial markets is an idea whose time has come, he added.
Tyagi also said that the market infrastructure for corporate bonds and G-Sec markets should be integrated.
Having two separate ecosystems results in artificial segmentation of investors and divergent governance and regulatory norms for institutions in the two markets performing similar functions, he said.
Highlighting the potential of the Indian financial market, Tyagi said “We are passing through difficult, stressful and uncertain times. However, the challenges also bring along with them several opportunities.”
The revival of the stock market and an uptick in fund-raising by the corporates is encouraging, noted Tyagi, exhorting that the captains of the industry to come forward and make bold investment decisions, and contribute towards building an #Atmanirbhar Bharat.
In a bid to provide relief to companies affected by COVID-19, Tyagi informed that SEBI has issued a number of relaxations to facilitate fundraising by the corporates.
“SEBI has come out with relaxed norms for preferential issue pricing and exemption from the open offer for eligible stressed companies.
“These relaxed norms, finalized after wide public consultation, can be used for restructuring of stressed companies without going through the IBC process.
“Of course, the guidelines have due safeguards built-in to prevent misuse,” he assured.
The smooth functioning of Indian markets during this time of pandemic has proved beyond doubt that India is among the highest technology using nations in the world, underlined Ashish Kumar Chauhan, Managing Director & CEO, #BSE.
The ability of the Indian IT and BPO sector with voice banking system proved that India is a reliable country with tremendous skills, he added.
Congratulating the SEBI and the entire capital markets for buoyant uninterrupted performance, #FICCI President Dr Sangita Reddy has urged #SEBI to hasten the regulation enabling international listing.
“We need to work more on the development of the bond market. Credit is an important part of the economy and we can’t have only the banking system to provide credit, added Rashesh Shah, Past President, FICCI and Chairman & CEO, Edelweiss Group said that
“We need to improve the depth and efficiency of the market and bring innovation to it,” said Sunil Sanghai, Chairman, FICCI National Committee on Capital Markets and Founder & CEO, #NovaDhruva Capital said that
The increasing use of technology is one silver line in these times and will play a key role in the future of capital markets, according to Himanshu Kaji, Co-chair, FICCI Capital Markets Committee and Executive Director & Group COO, #Edelweiss Financial Services. #investments #financial #banks #bonds #capital #markets /fiinews.com
