'Stock market is safe for retail investors'

Terming the Indian capital market a safer place ever before for the retail investors, G Anantharaman, a whole-time member of the Securities and Exchange Board of India (Sebi), said it was the regulator's endeavour to catalyse the vast savings of the country's households into the capital market for enhancing the people's participation in the success story of Indian economy.

Speaking on the 'changing dynamics in the capital market and role of Sebi in the changing scenario', at the Hyderabad Stock Exchange here on Wednesday, he said the Sebi's ongoing endeavour had been to ensure simpler and globally accepted standards in corporate filings to make a normal retail investor aware of the performance and risk factors involved with a particular company's profile.

He said the integrated market surveillance system (MSS), which receives data on all stock exchange transactions, analyses and generates reports on aberrant instances besides tracking the overall trends, would enable the regulator to make quick interventions and judgements about the happenings. MSS was launched by Sebi on December 1, 2006.

"Our capital market today can take any amount of shocks. There is no crisis in terms of payments and liquidity. And the well protected interests of retail investors ensures a well-protected market in the end," he stated while stressing the need of the risk-averse Indian people to go for calculated risks that can reward them.

However, he cautioned them to grow to a level of reading the risks, which are not overtly stated in the print, and also be able to comprehend the international volatilities as the country is now integrated with the world. "We cannot totally avoid the risk. But the risk has to be anticipated and informed of by the intermediaries," he said.

Anantharaman said even a day may come where speculation will become a derivative and be traded also.

According to him, the FII investments in India crossed in excess of $ 50 billion by the end of November 2006 and many more India-specific funds are planning to enter the country. He also cited a global survey report, which according to him, termed India a safe bet for the year 2007.

Meanwhile, the Inter-connected Stock Exchange of India Limited (ISE) signed an MoU with the NALSAR University of Law, Hyderabad, for sharing the infrastructure and course material for its first training institute on financial markets being operated from the HSE premises on the occasion.

University vice-chancellor Ranbir Singh and V Shankar, managing director, ISE, signed the document. The institute teaches 14 subjects to students and professionals covering various areas, including derivatives, portfolio management among other things.