IFIE- Current Economic Scenario, Capital Markets & Investor Awareness – India

International Conference
International Forum for Investor Education (IFIE)
Financial Capability & Investor Engagement: Goals, Strategies
and Outcomes
1
Current Economic Scenario, Capital Markets &
Investor Awareness – India
Gopal Krishna Agarwal
President ANMI
Kuala Lumpur, Malaysia, May 2015
president@anmi.in
gopalagarwal@hotmail.com

Indian Economy: A Snapshot
Select Macro Economic Indicators
1. GDP at current US $ for 2013 1.875 trillion
2.
Gross Saving as a percent of Gross National
Disposable Income at current market prices in
2013-14
30.0
3.
Gross Capital Formation as a percent of GDP at
current market prices in 2013-14
32.3
2
president@anmi.in

Macroeconomic Outlook
 Projected GDP growth rate in 2015-16: 7.8% .
 India to be the fastest growing major economy in the world- IMF.
 Inflation expected to be under the target 6% for the year 2015-16.
 A double-digit growth trajectory for the Indian economy over the medium term
is very likely.
 Successful auction of coal blocks and passing of Mines and Insurance Bills have
given hope of continued action on the reform front.
3
president@anmi.in

Factors Driving Higher Growth
 Macroeconomic and political stability.
 Reorientation of government expenditure from ill targeted subsidies to
public expenditure that crowd in private enterprise.
 Fall in crude oil prices.
 Moderation in the increase in Minimum Support Prices (MSP).
 Removal of bottlenecks in major investment projects.
 Business sentiment is also buoyed by investor-friendly tax proposals,
structural reforms and the intention to continue fiscal consolidation
announced in the Union Budget for 2015-16.
4
president@anmi.in

Downside Risks To Growth
 Firming up of commodity prices, especially crude oil.
 Weak Monsoon.
 Shortfalls in the availability of key inputs such as power, land,
infrastructure and human capital.
 Weak and uneven global recovery.
 Exchange rate uncertainty stemming from US monetary policy
normalization.
5
president@anmi.in

Indian Capital Market: Overview
 Largest number of listed companies in the world–5624 as of 31st Mar’ 2015
(BSE).
 1st (NSE) and 5th (BSE) most liquid exchange globally for Index Options.
 3rd (NSE)and 9th (BSE) largest exchange in the world in terms of number
of trades in Equity Shares
 2nd and 3rd largest in the world in terms of number of currency futures
contracts traded (NSE and BSE resp).
 Number of Investor Accounts (March-15): 13.71 million (NSDL) and 9.61
million (CDSL).
Market Intermediaries 2011-12 2012-13 2013-14 2014-15
Brokers (Cash Segment) 10,268 10,128 9,411 6,147
Corporate Brokers (Cash Segment) 4,877 5,113 4,917 3,757
Sub-brokers (Cash Segment) 77,141 70,242 51,885 42,351
6
president@anmi.in

Some Select Figures
Year/
Month
Capital Raised
from the Primary
Market through
Public and
Rights Issues
Foreign
Portfolio
Investment
Foreign
Portfolio
Investment:
Cumulative
Assets with
Mutual
Funds at
the End of
Period
Market
Capitalization
of NSE
2008-09 3.48 -9.84 59.08 89.61 621.91
2009-10 12.20 30.25 89.33 130.20 1274.26
2010-11 14.88 32.23 121.56 130.33 1475.01
2011-12 9.79 18.92 140.48 118.56 1230.88
2012-13 5.98 31.05 171.53 129.35 1150.48
2013-14 9.56 8.88 180.41 141.82 1250.66
2014-15 3.16 45.70 226.10 178.33 1635.50
In billion $
7
president@anmi.in

Investor Education Initiatives by SEBI
 Resource Persons’ Workshop - A total of around 15708 programs covering
11 lakh participants (as on January 31, 2014 since inception in July 2010) have
been conducted across various target groups.
 Visit to SEBI - SEBI invites students in batches of not more than 60) from
schools, colleges and professional institutes who are interested to learn about
SEBI and its role as a regulator of securities markets. A slide show to impart
basic understanding regarding securities market followed by a brief question
answer session are included.
 Curriculum for CBSE Board on Financial Literacy.
 National Financial Literacy Assessment Test (NFLAT) - A national
level exam for school students, NFLAT had been conducted under National
Centre for Financial Education (NCFE) where over a lakh students participated
in the test.
 Mobile App for Investor Awareness
 Multimedia SEBI Investor Education and Awareness Campaign -
SEBI plan includes covering suitable mix of media vehicles to reach maximum
investors across the country in 13 major languages.
8
president@anmi.in

Investor Education Initiatives by SEBI
 Special emphasis on co-ordination with ANMI and Stock exchanges so as to
optimize resource utilization.
 SEBI to seek extra funds for investor protection programmes.
 Sebi to carry investor campaigns via mobile, Internet in FY 15.
 Investor Grievance Redressal Mechanism at the level of Intermediaries,
Exchanges, Regulator and Government.
9
president@anmi.in

 IEPF is for promotion of investors’ awareness, education and protection of the
interests of investors.
 Set-up under Section 205C of the Companies Act, 1956 by way of the
Companies (Amendment) Act, 1999.
 Following are the objectives/activities of the Fund:
a) Educating investors about market operations
b) Equipping investors to analyze information to take informed decisions
c) Making investors aware about market volatilities
d) Empowering the investors by making them aware of their rights and
responsibilities under various laws
e) Continuously disseminating information about unscrupulous elements
and unfair practices in securities market
f) Broadening the investors’ base by encouraging new investors to
participate in securities market
g) Promoting research and investor surveys to create a knowledge base that
facilitate informed policy decisions.
10
Investor Education and Protection Fund
Investor Education Initiatives by Government
president@anmi.in

Investor Education Initiatives by Government
 Till the end of November, 2014, as many as 3292 companies have uploaded
information about unpaid and unclaimed amounts (Rs. 4131.53 crore) of
investors lying with them on the website iepf.gov.in.
 This website has been set up for companies to file details of unpaid and
unclaimed amounts of investors for the last seven years or less, which are
yet to be transferred to the Investor Education and Protection Fund, so as
to enable the investor to reclaim the said money from the company.
Investor Protection and Awareness:
 In collaboration with the three Professional Institutes (i.e., Institute of
Chartered Accountants of India, Institute of Company Secretaries of India,
and Institute of Cost Accountants of India), 55 Investor Awareness
Programmes were conducted by Ministry of Corporate Affairs in different
towns/cities of the country during November, 2014.
11
president@anmi.in

Investor Education Initiatives by Exchanges
 Investor Awareness Programmes.
 Educational Modules for Investors.
 NSE plans to launch capital market training programs in different cities of
India.
 Seminars.
 Workshops.
12
president@anmi.in

Investor Education Initiatives by ANMI
ANMI 8th International Convention in Mumbai (the financial capital of
India) on Financial Literacy.
 The theme of the Convention: “Financial Literacy – Building Block for a Better
Tomorrow”.
 Chief Guest Hon’ble Justice Shri B.N. Srikrishna, Chairperson of the Financial
Sector Legislative Reforms Committee.
 International participation from Japan, Korea, U.S.A., Singapore, Nepal and
Thailand.
 Speakers from MoF- GoI, SEBI, BSE, NSE, MCX-SX, SGX, KOFIA, IFIE, AFIE,
ANMI, NSDL and other reputed financial sector companies like PwC, IIAS, IIFL,
Cedit Suisse, Edelweiss etc.
 It was a platform for knowledge sharing and gave AMNI knowledge and insight on
how to take forward the goal of Financial Literacy.
13
president@anmi.in

Investor Education Initiatives by ANMI
 Financial Literacy at school and college level through curriculum.
 Publication of research and other documents.
 Workshops and Seminars for investor awareness and education with exchange
and regulator.
 Promoting “Training Of Trainers” programme through National Institute of
Securities Markets (NISM) initiatives.
 Samriddhi Ki Paathshaala (26 Episodes Programme on investor education on
Doordarshan (National) TV channel)
14
president@anmi.in

Investor Education Initiatives By Other
Agencies
 RBI - The Reserve Bank of India proposed that unclaimed bank deposits,
estimated at over Rs 3,500 crore, be utilised for education and awareness of
depositors. As per the proposal, the banking sector deposits which have not
been claimed for 10 years or more will be transfered to 'Depositor Education
and Awareness Fund Scheme'.
 PFRDA - To protect the interest of the subscribers, in accordance with Section
41 (1) of the PFRDA Act, PFRDA Subscriber Education and Protection Fund
(SEPF) is being set up out of grants, donations penalties etc. which will be
utilised towards protection of the subscribers’ interest and promotion of
education and awareness among them.
 IRDA – a) During the FY 2014-15, IRDA has taken a number of consumer
education initiatives under the brand name Bima Bemisaal.
b) A Special Institute called National Centre for Financial Education (NCFE)
has been established under National Institute of Securities Market (NISM) to
implement NSFE with representatives from all financial sector regulators.
15
president@anmi.in

Thank You
16
Gopal Krishna Agarwal
President - ANMI
president@anmi.in

IFIE- Current Economic Scenario, Capital Markets & Investor Awareness – India

More Related Content

What's hot

Viewers also liked

Similar to IFIE- Current Economic Scenario, Capital Markets & Investor Awareness – India

Recently uploaded

IFIE- Current Economic Scenario, Capital Markets & Investor Awareness – India