He said that the main reason for increasing investor interest in the country’s securities market is the current low interest rate and adequate liquidity availability. Tyagi cautioned that a decrease in liquidity or an increase in interest rates may affect the market.
market trend positive
“However, it also needs to be acknowledged that the market outlook is looking positive and the investments being made are being made keeping in mind the future growth prospects,” the SEBI chairman said.
On an average 12 lakh demat accounts were opened every month in 2020-21
In the second Annual Capital Market Conference of NISM, Tyagi said that the interest of retail investors in the domestic securities market has increased from 2020-21. He said that in 2020-21 on an average 12 lakh demat accounts were opened every month. Whereas in the previous financial year it was 4.2 lakh months. According to Tyagi, “The trend has intensified during the current financial year and an average of 24.5 lakh demat accounts were opened per month during April-June 2021.”
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Equity market cash turnover increased by 70.2 percent to Rs 164.4 lakh crore in 2020-21 from Rs 96.6 lakh crore in 2019-20. Also, the individual’s share in the business increased by about 5 per cent to 51.4 per cent in the last financial year. According to Tyagi, mobile phone and internet based trading is another indication in the total turnover, which indicates the participation of retail investors.
He also said that retail investors in initial share-selling, REITs (real estate investment trusts) and InvITs (infrastructure investment trusts), ESG (environmental, social and governance) based mutual fund schemes and exchange-traded funds (ETFs) have The attraction is visible. According to Tyagi, the regulator has taken several measures to improve the robustness of the system to facilitate the growth of capital markets and attract more and more investors.
Several measures to create awareness among investors
The SEBI chief said that online KYC, several policy measures to facilitate fund raising for listed entities and the decision to introduce the perception of accredited investors are among the steps taken for the development of the capital market. Apart from this, the regulator has taken several measures towards creating awareness among investors, he added.
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