In this seminar Mr. U. K. Sinha, Chairman, SEBI said, ''The regulator had also sought the inclusion of financial literacy in school curriculum. As part of the proposal aimed at bringing more investors into the capital market, SEBI has held a discussion with the central ministry of human resource and development, besides representatives of secondary schools".
Mr. Sinha also said, ''The regulator should take up more tasks, apart from developing the market and protecting the investors. It must create awareness among the investors on the rules of the game. For instance, while the EPFO (Employees Provident Fund Organisation)can invest 15% of the funds in the equity market, it was not happening. Reason? The trustees of these funds are concerned about whether they have safeguards, a redressal mechanism and guarantee among others. India was the only major economy that had failed to attract money. Most of the FII investment into India is of money which belongs to pension funds.They have earned good returns"
To create awareness on the matter, SEBI is coming out with a national strategy on investor education with assistance from two other regulators, RBI (Reserve Bank of India) and IRDA (Insurance Regulatory Development Authority)
SEBI will launch a toll free helpline as part of educating investors on the securities market.
With the launch of helpline, an investor can ask any question regarding the securities market which will be answered.
Mr. Sinha released a brochure on Mutual Funds - Do's, Don'ts, Rights and Responsibilities.
SEBI also wants equity linked savings schemes should continue to enjoy tax benefit even after the implementation of the direct tax code, expected to roll out in next fiscal. These schemes were long-term investment platforms and therefore should continue getting tax benefits.
India's Capital market regulator SEBI is not encouraging mutual funds to float new schemes, unless it has a new theme. What's more, the SEBI has asked companies to merge the existing schemes, if the themes are similar. UTI mutual fund had merged 9 schemes.
As on September 2011, In India there were about 1,150 mutual fund schemes, compared with nearly 920 in September 2010, according to information available with the AMFI (Association of Mutual Funds in India). The value of funds invested in these schemes, however, fell to Rs. 15,42,295 crore as on September 2011 against Rs 21,46,660 crore in the corresponding period in the past year, largely due to a fall in the stock markets.
Photo Caption : Left to Right
Mr.Ravi Narain, MD NSE & Mr.U.K.Sinha, Chairman, SEBI (Releasing a SEBI brochure on “Mutual Funds – do’s, don’ts, rights & responsibilities”) in the seminar.
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