Mr. Bhave wants Long Term Retail Participation

June 25, 2009 · Author: · Category: conference call 

Citigroup hosted mr. Bhave, Chairman SEBI as the keynote speaker. Here is what he told @ the conference.

We live in uncertain times. While the pain has receded in the last few months, and is probably behind us, the uncertainty remains. Mr. Bhave pointed out that even as the Sensex fell from 21,000 to 8,300 and is now back to 14,000 levels, the Indian markets have proved stable through the crisis, with settlements and cycles on schedule. This is a marked change from the mid-90’s when settlements were severely affected.

Mr. Bhave stressed the need to increase retail participation in the Indian markets. The retail investor has acted as a counterbalance to institutional inflows and outflows in volatile markets. Citing mutual fund redemptions last year, Mr. Bhave pointed out that the majority were corporate. The slew of measures announced last week were expected to improve retail investor interest in the market.

The Indian markets offer investors many features comparable with the best in the world. Mr. Bhave outlined several areas which could improve conditions further. These included providing DMA (Direct Market Access) and cross-margining facilities for the secondary markets, facilitating IDR (Indian Depository Receipts) for foreign companies wanting to list in India, and improving issuance in the primary markets.

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